Case Study Becton Dickinson
1. What is the company name and background? What products/services do
they make? Where do they come from? How long are they in existence?
BD
ABOUT BD…
BD
Worldwide
BD is a leading global medical technology company that develops,
manufactures and sells medical devices, instrument systems and reagents.
The Company is dedicated to improving people's health throughout the
world. BD is focused on improving drug delivery, enhancing the quality and
speed of diagnosing infectious diseases and cancers, and advancing
research, discovery and production of new drugs and vaccines. BD's
capabilities are instrumental in combating many of the world's most pressing
diseases. Founded in 1897 and headquartered in Franklin Lakes, New
Jersey, BD employs nearly 30,000 associates in more than 50 countries
throughout the world. The Company serves healthcare institutions, life
science researchers, clinical laboratories, the pharmaceutical industry and
the general public. For more information, please visit www.bd.com.
BD focuses strategically on achieving growth in three worldwide business
segments: BD Medical, BD Diagnostics and BD Biosciences.

BD Medical is among the world’s leading suppliers of medical
devices and a leading innovator in injection- and infusion-based
drug delivery since 1906, when the Company built the first-ever
facility in the U.S. to manufacture needles and syringes.

BD Diagnostics is a leading provider of products for the safe
collection and transport of diagnostic specimens, as well as
instruments and reagent systems to accurately detect a broad
range of infectious diseases, healthcare-associated infections
and cancers.

BD Biosciences is a world leader in bringing innovative
diagnostic and
research
tools to
life scientists,
clinical
researchers, laboratory professionals and clinicians who are
involved in basic research, drug discovery and development,
biopharmaceutical production and disease management.
BD in the UK
Plymouth
This plant manufactures a broad range of blood collection products
and systems including BD Vacutainer® tubes for hematology,
coagulation and special chemistries, and supplies markets both
across Europe and around the world. The Plymouth facility, which
employs approximately 720 associates, also manufactures BD
Biosciences - Discovery Labware products which are used by medical
researchers.
Oxford
This facility is home to approximately 230 sales, marketing and
technical support staff from the Company's three segments: BD
Medical, BD Diagnostics and BD Biosciences. The Oxford office is
also the European headquarters for two of the largest units (BD
Diagnostics - Preanalytical Systems and BD Medical - Medical
Surgical Systems). These units are supported by a team of experts
from the human resources, information technology, customer service,
procurement and finance departments.
Swindon
This facility employs approximately 200 associates and specializes in
the development and manufacture of plastic purpose-designed drug
delivery systems which are supplied to the pharmaceutical industry for
filling and distribution to end users worldwide.
BD in Ireland
Drogheda
in April 2006, BD approved a €15 million investment to develop and
expand its medical devices global manufacturing center in Drogheda.
The investment prepared the Drogheda facility to manufacture a highvalue prefilled syringe known as the BD TM Saline XS. The expansion
has been built with capacity for a second line to cater to the rapidly
growing European market. In recent times this site has seen
significant new investment, additional lines and additional jobs
created. The use of Workplace Innovation and Team working has
played a significant role in securing future investment, and helped in
no small way to turn around the fortunes of this site.
Dun
Laoghaire
Beginning in 1969, the Dun Laoghaire facility manufactured a variety
of syringes until 1996, when the site began diversifying into pen
needles, an insulin injection system for the treatment of diabetes. In
January 2007, the last 0.5ml syringe was manufactured. As of April
2007, the Dun Laoghaire facility has 11 operating pen needle lines.
The Dunlaoghaire site has recently completed training of the
Joint Union Management Steering Team ( JUMST) This Group
will deal with non IR operational issues. The JUMST will be
central to shaping the future of the site, including the use of
workplace innovation and Team Working as an additional tool to
secure
future
investment,
job
security
and
increased
employment.
2. What are the characteristics of the company’s markets? Is it a monopoly or
is it subjected to too much competition from other similar companies? What
international factors affect the company e.g. foreign exchange rates? Does
the company export/import?
The Company is subjected to internal competition when tendering for working
with the network. The sites also produce product for other BD sites if the need
arises for production reasons.
3. Is the company part of a multi-national company? Or is it an Irish company?
Who has the power of decision in the company on IR issues, is it the HO
abroad or the local Irish management?
BD is a multinational Company who reports to corporate on a regular basis.
There is an Irish HR
function but decisions of investment etc. are made a
corporate level. Day to day matters is dealt with by the local HR team, as are
pay negotiations, disciplinary matters, staff briefings.
4 Who are the trade union(s)? Which grades does each organise? What is the
history of the trade union in the company? How long are they organised in the
company? How are the shop-stewards organised? Is there a union committee
in the job? Is there any inter-union structure in the company?
SIPTU the largest Trade Union in Ireland has over 450 members between the
two sites Drogheda and Dun Laoghaire. SIPTU organise the production staff,
The TEEU also have members in both locations.
What is the union-management agreement? What does it cover? Who are
the parties to the agreement? When it was first negotiated? When it was last
revised? Did it emerge from an LRC/Labour Court process? Is it covered by
an REA/JLC? Is it related to a national agreement (national company/industry
agreement)? Does the local union-management agreement cover the one
site, or more than one site? Are suppliers to the company or customers
covered by the local site/company agreement?
5. We have two separate collective agreements, one for each site, both of which
have been in existence for many years.
The terms and conditions are different in both locations although there are
similarities. The pay increases are the same in both sites. Negotiations are
done separately at the Company’s behest although the Stewards of both sites
meet quarterly with their Union Official to discuss issues of common concern
and formulate a common response.
We also have regular meetings in each location, and General Meetings to
update our members on progress etc. In addition the Shop Stewards attend
briefings and training sessions periodically.
.
6. What is the union-management industrial relations structure(s)/processes
e.g. just direct talks as issues arise or regular joint meetings? When did the
current structure/process first start? How did it develop? How does the
structure/process work? Could they be improved? Have they changed
recently?
The IR processes are as follows; issues are raised at local level with the Shop
stewards in the first instance if the matter remains unresolved I then become
involved if the issue remains unresolved either party may refer the issue to the
Labour Relations Commission for a Conciliation Conference and possible
referral to the Labour Court for a non-binding recommendation which our
members will ballot on in due course.
7. What were the most recent negotiations about? What was the range of
issues involved? What were the difficulties? How were they overcome? What
were the positive and negative aspects of the negotiations? What was learned
from the negotiations? What relativities (if any) affect the union-management
negotiations? Is the negotiations at local level or national level or both?
The most recent negotiation centred on pay talks a pay increase of ----- was
agreed the pay agreement was as follows:
The negotiations took place at local level and the pay increase was awarded
equally to both sites.
8. Are there outsourced activities in the company e.g. catering, security? Are
they separate employers, and does the union negotiate separately with these
outsourced employers, or with the main site employer? Are the outsourced
activities covered by the same local agreement?
Both the security services and the catering services are outsourced and they
are to my knowledge members of the Services Division of SIPTU who
negotiate their terms and conditions through JLC’s.
9. What is the HRM style? What is the HRM approach?
Originally the HRM style and approach was the traditional adversarial
approach which led to a difficult industrial relations landscape which was
highly confrontational especially on the Dunlaoghaire site, but in recent times
the Company have become more amenable to a partnership /workplace
innovation model which has worked well for the parties and played a part in
securing future investment for both sites thus securing existing jobs and
creating additional employment in both locations.
10.
Are there any consultative / joint union-management structures in the
company e.g. Joint Union Management Steering Group (JUMSG) or workplace innovation processes?
Yes a Joint Union Management Steering Team is in place in both Drogheda
and Dunlaoghaire.
The JUMST process evolved in Drogheda and it was so successful it has
taken hold in Dunlaoghaire too.
11. Is the company covered by a European Works Council legal arrangement?
How does this work?
Yes the Company has a European Works Council and a Member of our is the
European works Council representative he represents both BD sites. The
European Works Council meets on an annual basis.
12. Is the company covered by the Worker Directors legislation?
Yes the Company have Worker Directors in place.
13. Does “custom and practice” affect the negotiations/agreement
Yes custom and practice occurs on both sites albeit infrequently but the vast
majority of our day to day IR engagement is covered by the collective
agreement and the JUMST is also a formalised recognised activity with
training and scheduled meetings. The workplace innovation has positively
impacted IR although IR and the work of the JUMST are separate fora and IR
issues are not discusses at JUMST.
14. What laws apply to or underpin or affect the union-management agreement
Collective Agreements have recognised status in Ireland and collective
Agreements have standing in TUPE situations.
15. Does Government affect the company in any way e.g. grants?
To my knowledge the Company would benefit from tax concessions in the
normal way for research and development purposes.
16. Has the Company been taken over at any time
No the Company have never been taken over
17. Has employment in the company increased/reduced recently? How this issue
was approach and handled by the union? What were the outcomes?
The employment in both locations has grown significantly with proposed site
expansion on going in Dun Laoghaire.
Here is an outline of the improvements thus far achieved in Drogheda:
The fortunes of companies and plants can
be turned around when management and unions work together to release the
knowledge, experience and creativity of their workforces.
Becton Dickinson has produced medical devices in Drogheda for fifty years, but
during the first decade of this century the plant seemed to be falling off the parent
company’s radar. Drogheda was gradually being overshadowed by its sister factory
in Dun Laoghaire with fourteen pen needle production lines compared with
Drogheda’s one. Substantial job losses and a lack of new investment left a space
inside the factory “the size of a football field”. Employment had fallen to less than a
hundred. Moreover corporate interest was clearly waning: “we weren’t getting many
visitors” according to David Mullis, Head of HR.
Concern about the plant’s future led to an approach by the company’s trade union
representatives, supported by SIPTU Organisers Karl Byrne and Michelle Quinn, to
the IDEAS Institute. The Institute was established by SIPTU, Ireland’s largest trade
union, “to identify ways in which new thinking and new services can be introduced
into the workplace for the benefit of employees and the enterprise as a whole.” An
increasingly important part of its role is to involve companies and their employees in
introducing smarter ways of working – a striking example of how some unions are
developing capacity as knowledgeable participants in workplace innovation.
Tony Murphy and his colleagues at the IDEAS Institute held a series of inclusive
meetings with BD employees, union representatives and management, eventually
leading to the creation of JUMST – the Joint Union-Management Steering Team in
which both parties were equally represented. Drawing on inclusive dialogue with
employees at every level, JUMST defined the future vision for Drogheda and
identified the first cluster of improvement projects designed to show that the factory
could again become a key performer within the BD group.
Tony, an expert in lean thinking and practice, provided the tools and expertise with
which JUMST could analyse existing shopfloor processes and identify better ways of
working. This included customised training for “people of influence”, a group of
fourteen managers and employees representing a diagonal slice of the entire
Drogheda workforce.
There was a strong focus on the key elements of workplace innovation including
autonomous teamworking, continuous improvement, employee-led innovation
groups and, above all, a collaborative culture in which decision-making was routinely
shared between managers and workers. Unsurprisingly some managers were
initially defensive about the changes, perceiving them as personal criticism. Most
were “won over by enthusiasm” from the JUMST team and by reassurances that the
aim was improvement rather than criticism. A few managers however eventually left
the company.
Likewise SIPTU shop stewards played a key role in overcoming the anxieties of their
members, ensuring that they felt a sense of ownership of the changes through
communication, open dialogue and active involvement. This represented a
significant move from the traditional role of the union representative to that of change
champion.
JUMST is adept at avoiding industrial relations issues, which are dealt with in a
separate forum. It continues to drive the process, recognising that improvement and
innovation are not one-off occurrences and need to be embedded within the culture
of the company. One SIPTU representative, Ged Bannon, works full time on JUMST
issues and is “on call 24/7”. Ged argues strongly that when change is needed, union
representatives shouldn’t wait for management to take the initiative but “just do it”.
So what has been the result?
There is a tangible optimism about the future of the Drogheda plant.
JUMST-inspired improvements are leading to significantly enhanced performance
against a range of indicators, and this in turn is reflected in a new investment
programme that has seen the number of moulding machines rise from eight to
twenty six. Existing jobs have been saved and several more created.
SIPTU representatives report increased levels of engagement and well-being
amongst their members, supported by newly acquired personal skills and
confidence.
Moreover the JUMST model is now being implemented in the much larger Dun
Laoghaire plant, with SIPTU local representative Pat Perry playing a key role. Once
again this is expected to lead to substantial gains for BD and its employees alike.
Becton Dickinson offers persuasive evidence that workplace partnership
means more than good industrial relations. Unions can play a key role in
engaging workers at all levels in innovation and improvement, creating winwin outcomes for employees and their employers. SIPTU’s IDEAS Institute
provides a clear lead for other European trade unions.
18. Where any other issues or developments affecting the union-management
negotiations/relationships?
As previously advised, prior to the introduction of workplace innovation and
team working the industrial relations landscape on both sites, had proven
extremely challenging as the model used by HR was dictatorial and
adversarial in nature. The workforce generally, not unreasonably took
exception to this style of engagement and they too adopted an adversarial
style in response.
All of this made it difficult to make to make progress on IR issues and perhaps
coloured the view of Corporate as to how they viewed both sites in terms of
future investment and site expansion.
Thankfully, Corporate have reconsidered how the view BD Ireland and it is
becoming a location of choice within the network.