waterford crystal and corporate social responsibility

Waterford Crystal and Corporate Social

Responsibility

Diversity, Disability and Strategic Change

Dr. Alan Bruce

Director, Universal Learning Systems

Dublin, Ireland

March 2004

__________________________________

ULS - ICFAI Article 2004 1

1. Waterford Crystal: Context and Background

Waterford Crystal is one of Ireland's leading international brands. It is one of

the largest indigenous private employers in Ireland and operates on a

multinational scale. Originally founded in the 18th Century, the company was

re-established after the Second World War using the experience of refugee

Czech craft workers. The company has become a by-word for quality crystal

production and has diversified into the luxury goods arena globally. In addition

to its crystal sales (one of the most dominant and recognizable quality brands

in the United States) the company owns and has strategic relationships with a

range of quality producers globally (including Bulgari and Versace). It owns

Wedgwood Porcelain in the United Kingdom, Rosenthal Ceramics in Germany

and All-Clad Cookware in the United States.

The company has pioneered the concepts and methods of corporate social

responsibility in Ireland. This stems in part from its traditions of quality and

customer care – and associated principles of valuing the skills and needs of

its workforce. These traditions have been maintained and deepened during

the years of Ireland’s extraordinary prosperity and economic growth that

began in the early 1990s. But it is important to realize that they also stem from

its response to economic crisis and near-collapse in 1989. This focused

attention on the new to improve productivity and profitability. What makes the

experience of great interest was that this process was linked directly to social

partnership, upskilling and a new emphasis on employability.

Over the past ten years this process has transformed all aspects of the

company’s manufacturing base in Waterford.

Following 30 years of uninterrupted growth (from 1957 to 1987), Waterford

Crystal ran into serious difficulties in the late 1980s due mainly to:

(1) An unsustainable cost base arising from uncompetitive work practices


(2) Weak dollar and disadvantageous exchange rates for Irish exporters

(3) Worldwide recession

(4) High product prices and resulting slackening in demand

(5) Loss of market share in a mature market

(6) Adversarial industrial relations.

These factors combined to create a serious crisis requiring the immediate

implementation of strong cost improvement measures. The crisis years lasted

from 1988 to 1992. A series of draconian measures was implemented

including:

Pay cuts ranging from 7% to 25%

A seven year wage freeze

The introduction of a wide range of flexible work practices

A new beginning for union - management relations based on

agreed procedures.

Over €50m was taken out of the cost base in that period of retrenchment. A

fourteen week strike in 1990 represented the most difficult period of the crisis.

It was a period of recrimination and bitterness. Employees felt let down by

management and the company performance. It has taken several years of

proactive employee relations initiatives to repair the damage caused to the

social fabric of the organization during the strike.

2. Turnaround Process: 1988-1994

The turnaround process was prolonged and difficult for everyone working in

the company. A comprehensive transformation in operating activities achieved

a new level of competitiveness. Company performance of improved

dramatically. A number of key changes/initiatives impacted significantly on the

turnaround process.

These included:


Rationalization of the workforce - over 1,000 employees accepted early

retirement or voluntary redundancy.

Investment of €130m in share capital by a consortium.

Five major industrial relations agreements were established between 1989

and 1994.

Reduction of the cost base - creating a new platform for competitiveness.

Reduction in labour costs (from 70% of overall costs to 50% currently).

Outsourcing product from a range of highly skilled but cheaper producers

(mostly in eastern Europe). New products were subjected to a make or

buy decision.

Business strategy was changed from production-led to

marketing/customer-led, with enormous implications for the manufacturing

operations.

The manufacturing process was re-engineered from predominantly craft to

a techno-craft operation. The best of the craft was married to the sensible

use of technology. This upgrading of the process improved standard cost

and provided new opportunities for innovation and creativity on concept,

design and speed to market.

Over €75m capital investment was employed in restructuring and re-

engineering plant layouts, processes, products, systems and structures.

New cross-functional project teams were established to address major

restructuring issues. Cross functional activity and relationship building

helped flatten a hierarchical structure. Many of the rigidities that denied the

organisation the flexibility and agility it required to compete in the global

market were eliminated.

Employees were re-educated and retrained to work successfully in the

new work organisation. They were motivated to build a new portfolio of

skills and knowledge that enabled them to achieve employability in a

constantly changing work environment.

An informed and questioning workforce was established to enable

employees make informed decisions and participate fully in the

regeneration process.


The depth and breadth of the restructuring process provided employees with

many personal challenges. New qualifications were required to cope with new

job specifications and new processes. Education, training and

communications initiatives promoted within the company facilitated many of

the changes introduced and primed the setting of new standards of

performance throughout the organisation.

The development of an informed and questioning workforce enabled

employees to make informed decisions on personal work related issues as

well as broad strategic organisational issues. It was found that when

management and employees were given access to the same information they

invariably came to the same conclusion on what had to be done.

The re-engineering of the workplace led to the implementation of a massive

redeployment programme. Over 800 employees moved into new jobs

requiring entirely new skills and knowledge sets between 1995 and 2000. This

movement of employees placed huge demands on training and education

resources.

It also meant that there was a need to look at the potential and capacity of the

entire workforce. Changing times and conditions meant that the traditional

pattern of male, mono-craft industrial worker was obsolete. New groups

offered fresh perspectives in terms of diversity and variety – as well as

ingenuity and innovation. Thus the Company began to actively facilitate the

recruitment, retention and promotion of non-traditional sectors within the

context of its strategic change. This meant an orientation towards women,

disabled employees and those of different national origin.

Central to the provision of imaginative HR development programs was

involvement in European Union Human Resource Development programs

(such as Employment Horizon, Adapt, NOW and Leonardo da Vinci).


The EMPLOYMENT Community Initiative Programme, funded mainly by the

European Social Fund, targeted groups facing specific difficulties in the

employment market. The EMPLOYMENT Initiative commenced in 1994 and

finished at the end of 1999. The European Union’s contribution to the overall

budget for EMPLOYMENT for the period was €1835 million. EMPLOYMENT

had four strands each catering for specific target groups: women, young

people without qualifications, people with disabilities and people excluded or

at risk of exclusion from the labour market.

EMPLOYMENT aimed to identify new solutions to the problem of

unemployment in the European Union by funding pilot projects. It sought to

contribute to the development of human resources, to improve the working of

the labour market, to promote social solidarity and equal opportunities.

Projects were selected and approved in each Member State from applications

received after a call for projects. Member States worked within a common

framework of selection criteria. To be eligible a project had to be able to

demonstrate that it was innovative, had a transnational work programme and

had to have two or more transnational partners.

Within the overall context of the EMPLOYMENT Initiative, HORIZON aimed to

improve the employability and job prospects of people with disabilities by:

The matching of training and work experience with information and

support measures

Improving the delivery of services based on the individual needs of

people with disabilities and strengthening cooperation between

professionals and actors in the field

Changing attitudes amongst employers, trade unions and other local

actors in pursuit of more holistic approaches

Involving people with disabilities as actors in their own progress

towards open employment.


Priority was given to experimental projects falling under one or more of the

following headings:

Developing new systems of training, counselling and employment

including adapting the work place to new technologies

Training with appropriate guidance, work placement and support

programmes

Supporting job creation and innovative measures to secure

employment, including new public and private partnerships

Raising awareness amongst employers and amongst people with

disabilities themselves.


3. Creating Options for Disabled Employees (CODE)

As a company, Waterford Crystal had a long tradition of including people with

disabilities in the workforce. Some had attended special schools in the area

for a period as they had some form of learning difficulty. More particularly,

many were from the deaf community. The recruitment and employment of

deaf people into the company started in the early 1970's and at one stage

there were 20 deaf employees in the company. There were also a number of

other employees with different types of disability active in the workforce.

In addition to those employees with disabilities still active in the workforce, a

significant number of employees were also absent on long-term disability.

These employees, due to illness and / or the onset of disability, had not been

able to continue in their jobs and were at home inactive.

The company, by means of training analyses, performance reviews and

forward business planning were aware that many of the company's

employees with disabilities (particularly those deaf employees) had not

participated in the kind of training and development programs which most of

the workforce had undertaken. This was prejudicial both to the individual

employees (as their future employability was at risk) and to the company (as a

group of employees were not contributing to improving the company's

competitive advantage). The company recognized that specific measures

would have to be taken to ensure that employees with disabilities would

receive equal training and educational opportunities. These measures could

also be applied to those on long-term disability who were interested in

retraining for alternative employment, either within the company or elsewhere.

Waterford Crystal has extensive links to the community in which it operates.

The company therefore was also anxious to assist the development of other

people in the community with disabilities through the attainment of knowledge

and skills which would improve their chances of labour market. It was

decided, therefore, that whatever measures were taken to encourage the


growth and development of existing employees with disabilities would be

made available to people with disabilities from the community at large.

This was in keeping with the company's evolving culture of adopting practical

measures to further demonstrate and strengthen the level of its corporate

social commitment. The project beneficiaries therefore were to be:

Existing employees with disabilities

Employees on long-term disability

People with disabilities from the local community.

The project, as finally approved by the Commission of the European Union,

was called CODE (Creating Options for Disabled Employees).

The project was to focus on 3 main areas:

The development of employees with disabilities to ensure maximum

competitive advantage

The piloting of methodologies and approaches which would allow the

company to further develop and strengthen its commitment to equal

opportunities and social inclusion

The reinforcement of the company's identity as a committed

stakeholder in the local community, responsive to identified social

needs within that community.

The overall aim of the project was to develop a deep rooted consciousness

within Waterford Crystal around the issue of equality of employment

opportunities for people with disabilities which would inform future policies and

actions.


Specified project objectives were:

To ensure that those people with disabilities working in the company

would have sufficient skills, versatility and flexibility to retain their

employment in the company by developing their maximum potential as

employees.

To offer an opportunity to employees on long term disability to retrain

and acquire new relevant skills should they wish to do so.

To provide training in relevant skills to a group of 20 people with

disabilities from the wider community which would improve their

opportunities of obtaining and retaining employment on the open labour

market.

To develop sustainable transnational partnership arrangements which

could lead to joint future actions

To develop a model of best practice on the growth and development of

employees with disabilities within a modern manufacturing context.

To develop a model of Employer Based Training for people with

disabilities which could be replicated at a broader level in Ireland and

Europe

To develop a model of best practice in relation to equality of

employment opportunities for people with disabilities even in contexts

of minimal recruitment.


Core project activities centred on the following initiatives:

(a) The Employability Development Programme

The programme was designed in such a way as to ensure its relevance to the

needs of all employees in a modern manufacturing context. The training

programme incorporated an eight module format:

o Teamwork

o Information Technology (European Computer Driving Licence)

o Quality

o Business Awareness

o Communications

o Health and Safety

o Customer Care

o Engineering Technology

The programme incorporated a four-week work experience in various

departments within Waterford Crystal.

(b) Accreditation and Certification

Certification options for the modules of the above programme were as follows:

Information Technology (ECDL)

Quality (NCVA Level 1)

Business Awareness (NCVA Level 1)

Communications (NCVA Level 1)

Health and Safety (City & Guilds )


(c) Job Club

The Job Club element of the programme was delivered by a consultancy firm

with extensive experience of Job Club delivery in the Dublin area. The primary

aim of the Job Club approach was to equip participants with the necessary

skills to seek and obtain employment.

The Job Club programme provided training in the following areas:

Review of past experiences

Identification of strengths and weaknesses

Compilation of Curriculum Vitae

Job Analysis/Requirements

Company research

Job Application

Interview Techniques

Psychometric Testing in Recruitment.

(d) Rehabilitative Employment

The CODE Project envisaged an extended work experience period for those

participants who wished to undertake this part of the programme. There were

a number of steps involved in this process.

Formal agreement for this extended work experience programme took place

at Management and Senior Trade Union level. The company paid eligible

participants a rehabilitation allowance of (as permitted by the Department of

Social, Community and Family Affairs). Participants would work 19.5 hours

per week on work experience in the company. This extended period of

experience in the working environment was to be known as rehabilitative

employment.

To facilitate this placement the following steps were necessary:


Discussion with individual participants to ascertain the area of work

they would be most interested in for their work experience.

Negotiation with individual Front Line Managers for work experience

placements.

Negotiation of flexibility of working time for those participants who

required it.

Many of the participants, although obviously keen to undertake the activity,

were very anxious that they might lose their benefits. Their anxiety in some

cases was increased when they received letters from the Department

informing them that their benefits were to be reviewed in the light of their

participation in this activity. Through liaison, the difficulties were eventually

overcome. All 14 participants who wished to avail of this rehabilitative

employment were placed in areas of the company.

(e) Transnational Co-operation

The transnational element of the CODE Project incorporated the following

partners:

EEGA Ergonomie, Holland

The main objective of EEGA is to support people with disabilities to enter the

labour market. They have a thorough knowledge and expertise of telematics

and information technologies. Great emphasis is placed on acquisition of

appropriate skills and also advising employers on workplace adaptations.

EEGA generally deals with people with a physical disability although they also

cater for some people who have a background of psychiatric illness

ENAIP Toscana, Italy


ENAIP Toscana is the regional agency of ENAIP, the National Association for

Vocational Training promoted by ACLI (Christian Association of Italian

Workers ). It has specific interest and expertise in the development and

application of innovative technologies and methodologies for multi-media

based learning. Its services cover people with disabilities in general -

although the Lucca based element of the project concerned mainly people

with a background of psychiatric illness

Ellingham Employment Services, United Kingdom

Based in East London, Ellingham Employment Services is a non-profit

vocational training and supported employment placement organisation. It

specializes in various local and national supported employment strategies for

people who have a range of learning disabilities and other socially

disadvantaged groups.

The transnational co-operation agreed the following activities:

* Joint research

* Joint development of products / services

* Joint seminar, conferences

* Exchange of information and material

* Exchange of staff

* Create, maintain and update a project website

* Joint Development of training methodologies (Exchange of Information,

Material; Joint Development of Products / Services; Exchange of Staff).


The co-operation of the partners within the transnational project led to a

model of best practice for the integration of people with disabilities into the

workplace.

The model incorporates guidelines on the following elements:

Assessment Procedures

Training of Trainers

Training delivery : Content, Methodology and Evaluation

Approaching Employers

Developing Networks with Employer Involvement.

The transnational partnership also laid the basis for future collaboration in the

form of a generic training programme to promote social inclusion in the

workplace. The programme, designed in such a way as to be suitable for staff

from public, private and voluntary sector bodies, would incorporate the

following modules:

Assessing Human Capacity

Ergonomics and " Design for All"

Assistive Technologies

Managing Diversity

Equality Legislation

Interpersonal, Communicating and Networking Skills

Objectives and Standards Setting

International Best Practice : Critical Review and Analysis

Advocacy

(f) Training of Trainers

The project provided for trainer skills development for a number of Waterford

Crystal staff. This encompassed:


1. A specific trainer skill development programme organized and certified by

the Irish Institute of Training and Development.

2. A programme to develop the skills necessary for the management of a

diverse workforce. This program, developed in conjunction with University

College Cork, is the “Diploma in Professional Studies (Managing Diversity)”. It

is a major innovation and is the first course of its kind to be run in Ireland.

(g) The European Policy Conference: New Perspectives: Disability and

Employment

The "New Perspectives: Disability and Employment" conference held in

Waterford in November 1999 firmly put the issue onto the national agenda.

The array of speakers attracted significant coverage in the national media.

Ted Kennedy Junior, a leading activist in disability issues in the United States,

gave the keynote address. Other main speakers included: Brian Crowley,

Member of the European Parliament; Michel Laine of the European

Commission; Niall Crowley, CEO of the Equality Authority in Ireland.

The large attendance at the event was testimony to the high profile of the

conference speakers. The conference, in addition to the contributions from the

main speakers, gave particular scope to highlighting the work of the

transnational partners. It also highlighted the commitment of Senior

Management of the company with contributions from the Chief Executive

Officer, the Manufacturing Director and the Director of Human Resources.

Trade Union representatives also made significant contributions to the

success of this event as did participants on the programme.

(h) Thematic Groups

Waterford Crystal participated in one of several national thematic groups to

promote the mainstreaming of good practice from individual projects with

related aims and objectives. The project was represented on the Thematic

Group known as JobNet.


One of the primary duties of the project in relation to its role in the National

JobNet Thematic Group was the filming and production of a video aimed at

highlighting examples of the successful integration of people with disabilities

into the workforce and how that success was achieved. The video

complements a disability awareness reference manual. Both represent a

resource for raising awareness among employers about the potential of

people with disabilities to contribute positively to the workforce.

In addition to the thematic activities carried out at national level, project

representatives also participated at European level in conferences in

Luxembourg, Dublin and Copenhagen, aimed at developing European

Networks of Employers with a commitment to providing equality of

employment opportunities for people with disabilities. This work resulted in the

production of a policy paper submitted to the European Commission for

review and action.

Outcomes

The outcomes from the CODE project can be considered from the following

perspectives:

• Organizational

• Local and Community

• Transnational

• Participant

Organizational

Within Waterford Crystal it is clear that the CODE project had a significant

impact in a number of areas:

1. Organizational Culture


Through the project activities and prolonged presence of a substantial group

of people with disabilities in the company, there is a greater acceptance of

people with disabilities into the workplace. Although it can be argued that this

had been present in the company for some time, the project served to

facilitate the growth of this and opened the door to further development

opportunities for people with disabilities. By enabling the removal of barriers

for one group of disadvantaged persons, the project also helped to establish

mechanisms for similar actions with other groups. In this way, the company is

not only complying with the provisions of recent Equality Legislation but is

setting a standard for compliance with the spirit of that legislation.

2. Employee Contribution

The development of skills and knowledge that took place within the project in

relation to existing employees with disabilities enabled the company to benefit

from maximising the contribution of each employee. The employees

concerned also felt more involved in the company's operations and

participated more in company activities. This assists the company in gaining

sustainable, competitive advantage in the marketplace in which it operates.

3. Enhanced Management - Employee/Employee Representatives Relations

The general effort of the company to include existing employees with

disabilities and long-term disabled employees in initiatives of benefit to them

further developed relations between management and trade union

representatives. The fact that the company offered employment to a number

of participants from the outside community also reinforced the credibility of the

company in relation to its actions on this particular initiative.

4. Improved Facilities

The physical and infrastructural changes that took place within the lifetime of

the project greatly benefited not only the participants on the CODE Project but

also the general workforce.


5. Development of Accreditation Options and New Training Methodologies

Through the project activities, the company developed a number of training

tools, methodologies and approaches for use with the general workforce.

These include:

The Employability Development Programme

NCVA certified Locally Developed Modules in Quality and Business

Awareness Modules, available in electronic and printed format

Improved trainer skills

Disability Awareness programmes.

Specific supports for the delivery of training to people with separate

needs.

6. Development of In-House Trainer Capacity

Employees have improved trainer skills as a result of completing the IITD

Certificate in Trainer Skills and the Diploma in Professional Studies

(Managing Diversity) certified by University College Cork.

6. Enhanced Links with Third Level Institutions

The company also further strengthened its links with third level institutions

through the programme. The Diploma in Professional Studies (Managing

Diversity) organized is one of the first of its kind to operate in Ireland - indeed

in Europe. It is generally accepted that skills in diversity management will

become of greater importance to organizations in Ireland given the increase in

foreign workers and the effect of equality legislation. The company is now one

of the leading organizations in the country on this particular issue.

7. Consolidation of Reputation as An Equal Opportunities Employer

Waterford Crystal's reputation as a company that promotes equal

opportunities has been reinforced by the project. This is not just within the


local community but also, through the dissemination activities associated with

the project, particularly those around the " New Perspectives: Disability and

Employment " conference, to a national and international audience.

8. Status in Local Community Enhanced

The commitment to the local community is an important element in the

company culture. The implementation of the project activities was a platform

for strengthening ties between the company and a range of public, private and

voluntary bodies in the communities in which it operates.

9. Development of Networks

The company has also developed networks locally with other employers and

trade union representatives in the context of the work of the JobNet South

East grouping and with agencies from other parts of the country in the context

of the Thematic Groups organized under the Horizon programme.

Local and Community Outcomes

The outcomes for the local community can be described as follows:

Increased job security for a number of members of the community in

employment with Waterford Crystal.

One-year contracts within Waterford Crystal for unemployed people

with disabilities in the community. This comes at the end of a process

in which additional skills and knowledge were also acquired.

Improved access to the labour market for all participants of the

programme through the acquisition of necessary skills and knowledge.

Development of networks, involving of other employers, to improve

work opportunities for people with disabilities. This was facilitated by


having the support of Waterford Crystal, a major employer who has

experienced the benefits of providing opportunities for people with

disabilities and who has developed a model of good practice to be

adapted and used by other employers.

Through local and national media exposure, there was development of

awareness in the community about the issue of disability and

employment.

Enhanced access to a major local employer such as Waterford Crystal

by a number of local public, private and voluntary organizations.

Transnational Outcomes

On a transnational, European wide level a number of outcomes can be

identified:

A model for the systematic involvement of employers in developing equality of

employment opportunities for people with disabilities which can be applied

and adapted for a wider European employer audience

A best practice approach to developing Employer Based Training that can be

adapted depending on the national context.

A training and development path promoting the integration of people with

disabilities into the workforce was identified through the exchange of

experiences of training approaches, models and methodologies in the

transnational activity of the project incorporating: Assessment, Training of

Trainers and Employer Involvement.

A generic training module, aimed at further developing equal opportunities

within organizations for disadvantaged groups, was identified for development

through partner collaboration in future projects.


Participant Outcomes

In quantifiable terms the following are the main participant outcomes:

Nine employees with disabilities in Waterford have enhanced skill

profiles and improved employability.

Fifteen participants were offered a one year contract of employment

with Waterford Crystal

Twenty-three participants achieved full European Computer Driving

Licence (ECDL) certification

Nine participants achieved City and Guilds Certification in Health and

Safety

Ten participants achieved NCVA Level 1 certification in Business

Awareness and Quality.

Sixteen participants achieved the Diploma in Professional Studies

(Managing Diversity ) certified by University College Cork.

One participant successfully undertook an Arts Degree in University

College Cork

Under the Trainer of Trainers element, 23 people received certification

under the IITD Certificate in Training Skills Programme

A number of trainers enhanced their training and knowledge imparting

skills.

What is abundantly clear in relation to the community participants on the

Employability Development programme is that a key factor for them was to be

able to undertake training in a mainstream setting such as Waterford Crystal.


The status this gave them had an extremely positive effect on their overall

well-being.

4. Strategic Perspectives

Since the CODE project concluded in 2000, Waterford Crystal participated in

a number of other European Union projects concerned with equality, diversity

and best Human Relations practice. It was a major partner in the TRED

Project (Training Responses to Equality and Diversity) financed by the EU

Equal program. With its partners in Finland and France it drove forward an

employer focused agenda which looked at the opportunities inherent in

diversity to develop enhanced communications and teamwork for all

employees.

Under the European Social Fund In-Company Training Initiative, the

Company is developing two new employer based courses in association with

the National College of Ireland. These seek to develop a national Diploma in

Employability and a national Certificate in Work Based Skills.

The company is at the forefront of Irish employers in driving the agenda for

employability, adaptability and enhanced profitability in the context of social

inclusion and corporate responsibility.

CODE remains the largest and most influential project of its kind. It developed

the process which is now advancing beyond disability to include the other

areas of discrimination and marginalization identified by Irish equality

legislation: age, sexual orientation, gender, family status, nomadism, religion

and ethnicity.

Waterford Crystal operates in changed economic circumstances since 2001.

The emphasis in many companies is on increased profitability at any cost –

ignoring environmental and social factors. The Company has re-asserted the

need to put human beings first. In this context it believes that improved profits


are compatible with social responsibility if a number of key factors are

included. These include:

Open communications

Social partnership

Dialogue

Transparency

Added value

Community linkage

Environmental awareness

Flexible working conditions.

Waterford Crystal is proud of its record. It is equally aware that there is quite a

distance to go in advancing best practice among employers to meet the

challenges and opportunities of diversity and equality in a globalized

economic context.

Dr Alan Bruce

Dublin - March 2004

[email protected]

www.ulsystems.com


waterford crystal and corporate social responsibility

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