A Dangerous Business
I wish I had cable and catch things like this Frontline program A Dangerous Business
"The McWane corporation's aggressive management style -- what it calls "disciplined management practices" -- has helped the company to achieve tremendous profits through increasing worker productivity. Some critics, however, argue that McWane's gains have come at a very high cost: its workers' safety -- and in some cases their lives. But McWane's way of doing business is not the only way, as a comparison with its longtime Birmingham competitor, the American Cast Iron Pipe Co. (ACIPCO), clearly suggests. Here's a look at the two companies, both founded and based in Birmingham, Ala., and their competing visions."
...
McWane bought Tyler Pipe Company in Tyler, Texas in 1995. At Tyler, the application of McWane's "disciplined management practices" meant reducing the workforce by nearly two-thirds while demanding increased productivity. In 1999, four years after McWane acquired the foundry, an inspector from the federal Occupational Safety and Health Administration (OSHA) described conditions at the plant. "Many workers have scars or disfigurations which are noticeable from several feet away. Burns and amputations are frequent. Throughout the plant, in supervisors' offices and on bulletin boards, next to production charts and union memos, is posted in big orange letters: REDUCE MAN HOURS PER TON."
...
In contrast: American Cast Iron Pipe Co. :
"We had people say, 'You're crazy. That won't work. Why are you doing that? You're wasting all this money,'" says Richey. But he replies, "It actually works. And the employees are much more comfortable, and they're more productive."
Renowned for offering its employees an "outstanding" pension plan, on-site training programs, tuition reimbursement, and a state-of-the-art wellness center for employees and their families, this year ACIPCO ranks sixth on Fortune's "100 Best Companies to Work For." Such achievements are not lost on a veteran McWane employee like Robert Rester.
"Oh yeah, I've wanted to work at ACIPCO," says Rester. "I was told the only time you can get a job at ACIPCO is if somebody retires or dies or something like that. I mean people go to work there and stay forever."
Workers at ACIPCO have one very good reason to stay. Collectively they own the plant and share in its profits -- even after they retire.
John Eagan, who started his company in 1905, willed it to his workers when he died in 1924. Eagan was a devout Christian who tried to practice what his pastors preached by running a business based upon the Golden Rule. "Do unto others as you would have them do unto you," recalls Richey. "Before you make a rule, say, 'OK, this rule, what if it applied to me? Is it fair?'"
There was one notable dissent when John Eagan announced that he was going to operate his foundry on the Golden Rule. The president of the company quit -- his name was J.R. McWane. He crossed town to start his own pipe company -- and a dynasty based on a profoundly different vision -- more than 80 years ago.
Today, the McWane foundries thrive, still faithful to its founder's austere philosophy. McWane has an enviable record of commercial success, but an unenviable reputation as one of the most dangerous workplaces in America.
...
Read McWayne worker's stories
Watch program here
"The McWane corporation's aggressive management style -- what it calls "disciplined management practices" -- has helped the company to achieve tremendous profits through increasing worker productivity. Some critics, however, argue that McWane's gains have come at a very high cost: its workers' safety -- and in some cases their lives. But McWane's way of doing business is not the only way, as a comparison with its longtime Birmingham competitor, the American Cast Iron Pipe Co. (ACIPCO), clearly suggests. Here's a look at the two companies, both founded and based in Birmingham, Ala., and their competing visions."
...
McWane bought Tyler Pipe Company in Tyler, Texas in 1995. At Tyler, the application of McWane's "disciplined management practices" meant reducing the workforce by nearly two-thirds while demanding increased productivity. In 1999, four years after McWane acquired the foundry, an inspector from the federal Occupational Safety and Health Administration (OSHA) described conditions at the plant. "Many workers have scars or disfigurations which are noticeable from several feet away. Burns and amputations are frequent. Throughout the plant, in supervisors' offices and on bulletin boards, next to production charts and union memos, is posted in big orange letters: REDUCE MAN HOURS PER TON."
...
In contrast: American Cast Iron Pipe Co. :
"We had people say, 'You're crazy. That won't work. Why are you doing that? You're wasting all this money,'" says Richey. But he replies, "It actually works. And the employees are much more comfortable, and they're more productive."
Renowned for offering its employees an "outstanding" pension plan, on-site training programs, tuition reimbursement, and a state-of-the-art wellness center for employees and their families, this year ACIPCO ranks sixth on Fortune's "100 Best Companies to Work For." Such achievements are not lost on a veteran McWane employee like Robert Rester.
"Oh yeah, I've wanted to work at ACIPCO," says Rester. "I was told the only time you can get a job at ACIPCO is if somebody retires or dies or something like that. I mean people go to work there and stay forever."
Workers at ACIPCO have one very good reason to stay. Collectively they own the plant and share in its profits -- even after they retire.
John Eagan, who started his company in 1905, willed it to his workers when he died in 1924. Eagan was a devout Christian who tried to practice what his pastors preached by running a business based upon the Golden Rule. "Do unto others as you would have them do unto you," recalls Richey. "Before you make a rule, say, 'OK, this rule, what if it applied to me? Is it fair?'"
There was one notable dissent when John Eagan announced that he was going to operate his foundry on the Golden Rule. The president of the company quit -- his name was J.R. McWane. He crossed town to start his own pipe company -- and a dynasty based on a profoundly different vision -- more than 80 years ago.
Today, the McWane foundries thrive, still faithful to its founder's austere philosophy. McWane has an enviable record of commercial success, but an unenviable reputation as one of the most dangerous workplaces in America.
...
Read McWayne worker's stories
Watch program here