The company had been owned by members of the same family for more than a century and their management style was characterized by benevolent paternalism. However, with increased market competition, declining profits, lost export contracts and redundancy, the company’s owners decided to distance Beverage Co from its informal industrial relations history. In its place they introduced a more strategic form of human resource management, which included several employee participation (EP) schemes.

A similar team structure exists at the head office, with clerical workers engaged in administration, sales and marketing. However, there is no union recognition for these employees and despite several requests from the GMB union; management has decided to keep this side of the business non-unionized.

Here, the nature of work is organized around distinct production cells. Each production cell comprises approximately 10 employees, all of whom work on different production lines thatmake food and drink flavourings, including vanilla, coke, soup and meat additives.

There is union recognitionfor around 65 process operatives based at the manufacturing plant.