27 CASE The Alternative Work Schedule BACKGROUND March 13 marked an important day in the history of Building Products, Inc. The planning committee was meeting to determine the work schedule for all of the production workers ar its new plant. Attending the meeting was the human resource director, the plant manager, and the production manager. The plant was scheduled to open in a few months, and it was time to begin hiring new employees. The committee knew that the new work schedule would need to meet specific param- eters. First, the plant's production process would require that chemicals and materials be heated to high temperatures, so the plant would have to operate 24 hours a day, seven days a week, 363 days a year. On Christmas Day and the day before Christmas, the plant would shut down with only two employees needed a production operator and a maintenance technician Second, workers would not be able to take breaks all at one time. Rather, they would need to stagger the breaks and cover for each other. Third, having the standard 8-to-5 work schedule would not be possible, given the need for 24-hour coverage. Likewise, a work schedule that entails three shifts, each working eight-hour days would not work because coverage is needed seven days a week, and employees need time off to rest. After much discussion, the human resources director suggested that the firm try a schedule that she had heard about at another firm. The schedule entailed dividing workers into four crews, with each crew working 12-hour shifts on either three or four consecutive days or nights. It also meant that employees would switch between day shifts and night shifts. More specifically, the schedule of rotation for one crew would be as follows: 4 might shifts - 12 hours per night (7 PM to 7 am) 2 daysights of 3 day shifts-- 12 hours per day (7 AM to 7 PM) 2 daysights off 3 night shifts-12 hours per night (7 pm to 7 AM) 2 daysights off 4 day shifts-12 hours per day (7 AM to 7 PM) 8 daysights off Repeat sequence throughout this and future years A typical schedule over a 28-day period for each of the four crews would be Week 1 Week 3 SMTWTFS SMTWTFS SMTWTFS SMTWTFS Crew OOOONNN ONNNOOD DDDO000 000ONNN B NOODDDO NOODDDO ONNNOOD DDD0000 OOOONNN OOOONNN NOODDDO ONN NOOD D DDDO000 Key: N night shift: O off work D day shift Week 2 Week 4 NOODDDO DDD0000 ONN NOOD , not The human resources director noted that by dividing all of the workers into four working, yet all hours could be covered (see schedule above). Each crew would consist of 17 production operators, two warehouse/forklift truck workers to take product off the line, and one production supervisor. Also, she suggested that overtime pay be granted to employees when they work more than 40 hours per week. An employee who works a 48-hour week would receive straight pay for 40 hours and time-and-one-half for eight more hours . This equates to 52 hours of straight pay. Thus, in the course of a 28-day period, employees would work shift totaling 168 hours , but be paid for 176 hours . In addition, she recommended that employees who work over a holiday receive double pay for those hours, but that no additional overtime pay be provided for working Saturday or Sunday. After hearing the human resources director's recommendations, the plant manager and the production manager sat quietly, trying to digest the plan. The schedule was completely unlike anything they had ever experienced, and it struck them as bizarre. They could not help but question whether the plan would actually work. They also wondered if there might not be a better production schedule. QUESTIONS 1. What do you see as the strengths and weaknesses of the human resources director's work schedule from (a) the employees' perspective, and (b) the firm's perspective? 2. Would you recommend the firm use the new work schedule? Why? 3. What alternative work schedule could be used