Privileged and Confidential Labor RelationsMaterials Prepared Exclusively for

Management Personnel of

 

 

Non-Union CompaniesNon-Union Companies  

IMPROVE PERFORMANCE ANDIMPROVE PERFORMANCE ANDMINIMIZE EMPLOYEE LITIGATIONMINIMIZE EMPLOYEE LITIGATION

   

EXECUTIVE SUMMARY 

2004 

 © 2004, Jackson Lewis LLP – Licensed to SYSCO Foods, Inc.

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Highlights of Positive

Employee/Labor Relations Our Labor is 73% of our costs

Additional Costs• Turnover ($ 8,000 each warehouse associate)• Third Party Actions (Good Faith)

Productivity Key to “LT” health of SYSCOAssociate Productivity

• CMP (Operations)• STEP (Operations)• Work Rules• Incentive Program (Operations)• STAR Program

What does this Program DoIt will facilitate engagement with associatesAssociate will part of the improving their behavior and work habitsShifting the burdenDeveloping & Agreeing on common goal

Work Climate Survey Trends Communications, Inclusion & involvement & Favoritism

Consultation ModelEmphasizes

• Timeliness, Documentation & One on one problem solving Two Step Process

• Step One is consultation process (two step coaching interventions)

• Traditional Progressive Discipline Incorporates the Seven Due Process

Punishment fits the CrimeCardinal Sins requiring termination of first offense (Handout)Progressive is the focus

The Program will requireKnowledge and skills in one on one coaching (video)Approach compliments CMP (Hourly Approach)

Time TablesRole out 2nd QuarterReceive the Presentation, workbook and videoTarget group supervisors & managers of hourly associates

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How many of you know the average cost of a third party actions? Charges? Union Activity?

How many of you have formalized disciplinary processes?

How Many of you have specific work rules or policies defining disciplinary actions?

How many you are responsible or involved in the process and been asked to adjust due to mitigating circumstances or business needs?

How many of you have either implemented or tried to implement CMP at the associate level? Those of you that have how many of you feel that you have been successful?

Why do you think you were not successful?

You have a power point handout

We have less than one hour to discuss this topic I will not use the power point presentation, if leafing through the presentation you questions we will make sure we have time at the end of our presentation to answer those questions or If you have questions after the presentation please e-mails us

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OBJECTIVESOBJECTIVES

Understand SYSCO’s suggested Consultation Process and the Company’s Increased Focus on Solving Performance Problems.

Understand Sysco’s suggested Progressive Discipline Process.

Gain Insight Into How Judges Make Decisions in Discipline & Discharge Cases by Reviewing the Seven Tests of Effective Discipline or “Just Cause”.

Minimize Risk of Wrongful/Discriminatory Discharge Claims and Third Party Interference in Union Free Operations.

Apply the Principles Above to Improve Performance.

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FORMATFORMAT

Review Principles of Performance Management.

Review Steps to Establish & Maintain Good Performance

(Pre-Consultation Phase).

Review Consultation Process.

Review Progressive Discipline Process.

Review the Seven Tests of Effective Discipline/“Just Cause”.

Summary 

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Rule, Policy or Procedure

EMPLOYEE COMPLIANCE

FEASIBILITY/IMPLEMENTATION

DESIGN

War

ning

Let

ter

Cor

rect

ive

Act

ion

Aga

in

Bus

ines

s N

eed

Exp

lain

Con

seq

uen

ces

Ap

ply

Ap

prop

riat

e D

isci

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ne

Rev

iew

Pro

cess

Discipline (3 Steps)

Sus

pen

d P

end

ing

Inve

stig

atio

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Em

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ee O

bser

vati

ons

If E

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4

Tel

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Con

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Ob

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Com

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Doc

um

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Und

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Rea

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(Buy

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Em

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ased

Leg

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Coa

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Sho

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ompl

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Coa

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Employee Consultations

Pre – Consultation – Prior to Consultation Phase

–

Typically 2 step

Consultation prior to

Discipline, with

exceptions.

Ret

rain

Easy to

understand.

Needed goal

defined. (why)

Can R.P.P. be followed?

Employee compliance

desired results.

Employee must

comply.

Em

ploy

ee N

on-c

omp

lian

ce –

B

egin

Design, Feasibility & Design, Feasibility & Implementation ProcessImplementation Process

Em

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Pro

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Com

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I. PRINCIPLES OF PERFORMANCE

MANAGEMENT

A. Overview

1. Effective Design of Rules Policies, Procedures (RPP’s).

 

2. Pre Consultation-Insure RPP’s Are Feasible, Can Be Implemented and Can Be Followed.

 

3. SYSCO’s Employee Consultation Process.

 

4. SYSCO’s Progressive Discipline Process.

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B. Pre-Consultation Phase

1.1. Establish Effective Rules, Policies & Establish Effective Rules, Policies & Procedures (RPP’s) That Are:Procedures (RPP’s) That Are:

• Based on business need, good business practice, legal requirement, or customer need.

• Clear & understandable.• Employee can follow them.• Comply with law & corporate ethics.• Safe.• Enforceable.

2.2. Explain/Notify Employee of Job Standards Explain/Notify Employee of Job Standards and Work Rules (RPP’s)and Work Rules (RPP’s)

• In writing.• Regularly review with employees – at

least annually.• Review can be in a group setting.

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3.3. Provide Training to Employees.Provide Training to Employees.

• Includes training on work rules, policies & procedures.

• Provide information and rationale. Coach cards for safety.

• Provide a demonstration.• Allow practice.• Document understanding.

4.4. Insure Employee Knows Exactly How They Are Insure Employee Knows Exactly How They Are Doing.Doing.

• Receives feedback. Both positive and negative.

• Deficiencies explained in terms of expected vs. actual behavior/performance.

• Insure positive reinforcement is provided.

5.5. Employee Realizes It Makes a Difference If the Employee Realizes It Makes a Difference If the Job is Done Well.Job is Done Well.

• Knows the importance/consequences of performance.

• Explain business need, customer impact, legal requirement, etc.

6.6. Nothing, Outside Their Control, Prevents the Nothing, Outside Their Control, Prevents the Employee From DoingEmployee From Doing

the Job Properly. They Have the Proper Tools. the Job Properly. They Have the Proper Tools. (No obstacles)(No obstacles)

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C. Performance Problem Identification

• Define Performance Problems in Terms of Actual and Expected Performance

• Must Determine Cause: 

Knowledge

Execution

“Skill or Will”

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D. Solution to Performance Problems

Vision

CSFs

OrganizationalValues

Performance Areas/Goals

DimensionsSkills/Behaviors

Profit Plan

Organization GoalsDepartment Goals

Mission

TOTAL PERFORMANCEMANAGEMENT

““WHATWHAT””

““HOHOW”W”

ORGANIZATIORGANIZATION ON

INDIVIDUALINDIVIDUALConsultation Model

Alignment of CMP & Consultation ModelsAlignment of CMP & Consultation Models

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The Consultation ProcessThe Consultation Process

1. Supervisor observes employee performance problem.

2. Supervisor submits Action Plan to Manager.

3. Manager and supervisor meet with employee.

4. Communicate actual vs. expected behavior.

5. Ask employee for explanation.

6. Depending on source of problem (knowledge or execution), provide training or review proper procedure.

7. Document employees understanding of change needed.

Consultation #1 – (12 Consultation #1 – (12 Steps)Steps)

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Consultation #1 – (12 Steps)…Consultation #1 – (12 Steps)…continuedcontinued

8. Explain business consequences of not complying.

9. Obtain employee commitment to comply.

10.Supervisor follows up in timely manner.

11.Supervisor documents follow up.

12.Supervisor submits copy of completed Action Plan to Manager.

Consultation #2 – (13 Steps)Consultation #2 – (13 Steps)

  Repeat Twelve Steps of Consultation #1, with the addition of the following step after Step 8, above:

 Explain consequences to employee of not complying; i.e. possible progressive discipline.

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E. STEPS OF PROGRESSIVE DISCIPLINE

1. Written Warning – Issued by HR Manager & Ops Manager. 

2. Suspension – Issued by HR Director & Ops Director.

3. Termination

• Must suspend pending investigation before final action.

• Issued by HR VP and Ops VP.

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F. Documentation

Required at every stepRequired at every stepConsultation – Written Action PlanWritten Warning and Suspension- Letter to employee.

Subjects to IncludeSubjects to Include1. Name, date and type

of action2. Subject should be

“Poor Performance” for all deficiencies

3. Specific performance problem

4. Statement of desired performance

5. Employee explanation, if any

6. Prior meetings, if any

7. Employee commitment to improve/correct behavior

8. Consequences of repeated offense

9. Other relevant information

If it is a suspensionsuspension, provide details on duration and date and time employee is to return, and Indication of whether suspension is paid or unpaid

TerminationsTerminations – see next page

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1. In writing.

2. Specific and broad.

3. Inclusive of dishonesty and insubordination if employees are dishonest or insubordinate in meetings or in discipline steps.

4. Include total work history.

5. Note - Dishonesty, insubordination, harassment, any alcohol or drugs in system, carrying unauthorized passengers in company vehicles, climbing racks, firearms on company property, failure to report vehicle accidents, fighting, no call no show, slow downs or walkouts are examples of cardinal rules that result in immediate suspension pending investigation.

G. TERMINATIONS

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II. Seven Tests of Just Cause

A. OVERVIEW

“Just Cause” is the standard by which a manager determines corrective action is warranted. A legitimate non-discriminatory reason. A “good reason”.

A “no” answer to any of the questions signifies that just cause does not exist.

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B. ADVANTAGES OF USING THE SEVEN TESTS

• Management will be perceived as fair.

• Employees feel more secure that discipline will not be arbitrary.

• Adhering to the Seven Tests will help defend against:

•Employment discrimination suits

•Wrongful discharge claims

•Third Party Interference

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1. Did The Company Give the Employee Notice of Possible or Probable Disciplinary Consequences of Conduct?

2. Was the Prohibited Conduct Reasonably Related to the:

Orderly, efficient, or safe operation of the business, or

The performance the company might reasonably expect from an employee.

Was the rule reasonable (business need, customer impact, etc.)

3. Did the Company, Before Administering the Discipline, Conduct an Investigation Into Whether the Employee Violated the Rule?

4. Was the Investigation Conducted Fairly and Objectively?

C. The SEVEN TESTS OF JUST CAUSE

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5. During the Investigation, Did the Company Obtain Conclusive Evidence of Guilt?

6. Has the Company Applied Rules and Penalties Even Handedly Without Improper Discrimination?

7. Was the Consultation/Degree of Discipline Administered Reasonably Related to:

The seriousness of the offense.

The record of the employee.

Past decisions involving other similarly situated employees.

C. The SEVEN TESTS OF JUST CAUSE

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SUMMARY & SUMMARY & CONCLUSIONCONCLUSION

Follow the Principles of Effective Performance Management in the Pre-Consultation Phase.

Follow the Consultation Process.

Utilize the Progressive Discipline Process.

Follow the Seven Tests of Effective Discipline/”Just Cause”.

Document, Document, Document.

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Cardinal Sins

1.2. 1.       Horseplay that results in injury or would be likely to cause an injury.3. 2.      Interfering with the work of others.4. 3.      Using abusive language or gestures toward fellow employees.5. 4.      Threatening, intimidating, coercing or interfering with other6. employees on Company premises.7. 5.      Leaving during working hours without permission.8. 6.      Violation of safety rules.9. 7.      Gambling on Company property.10. 8.      Arrival prior to, or remaining after, regular working hours. 11. Admittance at other times is allowed only after obtaining permission12. from the Supervisor.13. 9.      Riding on trucks, dollies, lift trucks or other mobile equipment,14. unless properly assigned to such duty.15. 10.   Distribution of literature or solicitation for membership, pledges,16. subscriptions; the unauthorized collection of money, circulation of17. petitions or conducting any outside business during working time in18. working areas.19. 11.  Refusal to cooperate in a general/routine inspection of packages or20. bundles while entering or leaving premises.21. 12.  Accepting other employment which conflicts with employment at

SYSCO22. 13.  The sale or distribution of articles/merchandise on Company

property.23. 14.  Sleeping on the job.24. 15.  Job abandonment.