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More than $750,000 a year saved on a broken 7-day schedule
Elcoteq
Manufacturing
$750K+
saved per year in labor costs
18 mo
follow-up support
7-day
operation stabilized
The problem
Elcoteq moved its largest plant to a 12-hour, 7-day operation to boost capital utilization in a razor-thin-margin business. Under Mexican labor law, it was paying for time not worked, Sunday premiums ran double or triple, and absenteeism soared around poorly managed 'recuperation' days. Per-unit labor costs went through the roof, and crew inequities drove turnover.
What we did
- Analyzed operations and payroll to find the excess labor dollars
- Surveyed employees on scheduling inequities and the jump from 42 to 45 average weekly hours
- Aligned management and administrative schedules with the 12-hour, 7-day operation
- Designed models with better weekend sharing and room for cross-training
- Supported the cultural change for 18 months
The results
- $750,000+ per year in labor cost savings, confirmed in payroll data
- More hours effectively worked for the same pay
- Fairer night shift rotation for weekend sharing
- 18 months of follow-up support through the change
You were able to blend the needs of our business and the desires of our employees into a solution that not only saves us money but also improves the welfare of our employees. Your experience in helping employees and union leadership proved to be invaluable.
Pertti Mattila, VP, Business Control & Finance, Elcoteq
Is your 7-day schedule costing more than it should? Get a 30-minute workforce diagnostic.
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