A new performance pay scheme

Essay by lihaobd July 2008

download word file, 5 pages 3.0

The Coles Ltd. Supply Chain is a company that provides warehousing and distribution services to all Coles Limited companies. There are about 30 warehouses which was managed directly by the company. There are 70% full-time Warehouse employees in the whole warehouse workforce, and they are quite highly organized. Different states are represented by different unions – for example, the SDA in NSW and the NUW in Victoria. Each state and site negotiates their own enterprise agreement, normally within overall parameters established by the head office. For example, there is usually an agreement for a 3% annual pay arises, and any additional site costs must be offset by cost or productivity improvements. Body:In the past, the company had used the old pay system, it gives the wage to the full-time employees by their grades and work experience, the total pay includes the base pay, the wage levels, the welfare and the bonus, but the pay which give to the part-time employees is in accordance with their work time or the number of their work without the bonus and welfare.

Nowadays, the company is currently undergoing a major restructure and upgrade of technology in the warehouses. In order to introduce new inventory management systems, new picking technology and new transporting equipment on which to transport orders to customers, plans are being implemented over the next few years. At the same time, a couple of new enormous ‘composite’ warehouses are being constructed in SA and WA, and other warehouses are being expanded so that warehousing operations could be consolidated in each state on one or two sites. Because the board and shareholders want to see a significant return on that investment, the Board invested a lot of money in employing new senior managers, but that can only happen if productivity improves dramatically across all...