Kimberly Rivera
October 23, 2013
The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Plant
Case Study Review
Treadway was a major supplier of tires to replacement tire markets and to original
equipment manufacturers, including Ford, General Motors and Chrysler. The company staffed
almost 9,000 hourly and salaried employees in North America. The Lima plant in Ohio was one
of eight manufacturing plants for Treadway and suffered from high turnover and dissatisfaction.
There was constant conflict between the foreman and the production line employees; between
salaried and union employees. Turnover was significant in 2007, when 23 out 50 foremen at the
Lima plant left. Ashley Wall, Director of HR, was determined to solve the problem and cut
overall costs by reducing turnover and improving productivity.
After speaking with employees and reading exit interviews, it was clear that the solution
lied heavily in interpersonal skills/relations and training. There was mention of the work hours
and equipment, but changing those would have little impact on turnover. The Lima plant had the
best machinery and state of the art technology, therefore was the top plant for productivity and
quality ratings. Employees indicated they were satisfied with the work hours, duties of the job
and co-workers on their exit interview. What the foreman, specifically, yearned for was respect
and training.
Respect was not easily given or received at the Lima plant, which lowered morale
significantly. The foreman did not receive respect from the production line workers, the union or
their supervisors. With as many responsibilities a foreman had, they would customarily receive
respect and power to manage, but that was not the case. The union had more power and little
concern for the consequences when managing the union workers. If a worker was reprimanded
by a foreman, the worker would complain to the union and the union would have them back on
the line that same day. This caused hostility and frustration for the foreman. In return, the
foreman could not go to their supervisors to voice their concern, because it would reflect poorly
on their performance review and aggravate the supervisor. One foreman stated, “…No one
listens to us as foremen, no one acts on our requests. We’re between a rock and a hard place.”
There is also a culture of lack of communication that causes tension between the foreman and
their supervisor. Bellingham, the Lima plant manager, stated, “…but our general supervisors
and area managers are not accustomed to this style of management or level of social interaction.”
One way the level of respect would change significantly is if supervisors received management
training and if the foreman received on the job training.
Employees had plenty to say about supervisor’s management and lack of training. “The
younger line foremen are smart and pushy, but they just don’t get enough training-especially in
how to work with the union and how to manage their workers.” “That counseling stuff and
talking about motivation doesn’t cut it here. Foremen need to use an iron fist.” It was evident to
Ashley and majority of the employees and supervisors that providing training would resolve
many of the issues. Training would enhance understanding of procedures and among co-
Kimberly Rivera
October 23, 2013
workers. It would increase the foremen’s and all line workers’ efficacy and therefore, they
would feel more comfortable in the work environment, they would make fewer mistakes and
have a better performance review. Contrary to the general supervisor’s ‘sink or swim’ method,
employees would be inclined to do better, learn more and stay with the company if a formal
training system was put in place. Training would also help employees have a better opportunity
to advance within the company, eliminating some of the issues with finding qualified foreman
candidates.
It is unfortunate that Ashley created a formal training system and will not be able to
implement it, due to cost-cutting mandates. Cutting down costs through turnover was a
controllable element for the Lima plant; they could not control the costs of their materials due to
the economy. I think it would be a wise investment, to start training, because in the long run it
will bring benefits, such as positive morale, less turnover, less grievances and greater job
satisfaction.