Ten years ago, union members at Berner International Corp. did something that is virtually unheard of in the manufacturing arena: They signed a contract with wages and assignments determined at the discretion of the company's owner and CEO. The workers at this Newcastle, Pa.-based manufacturer of air curtains and doors have never regretted the decision.
"The employees have been quite happy working under the contract," says CEO Georgia Berner. "Whenever we have had a difference of opinion we have met, listened and talked it out to a mutual solution. When raises are announced, most of the plant employees come up and shake my hand and thank me."
Berner says that she has worked hard over the years to create a culture of trust, one in which employees feel free to voice their opinions and ideas. "I began with the simple premise that people who pay mortgages, raise children, attend college and pay taxes should not be required to park their brains at the company door, and that we would benefit the most by asking and allowing them to use those brains," Berner says. "Employees are given lots of latitude to grow and develop their jobs, whether it is in sales or production or any department in the company. The culture here is to share information and solve problems; we do not 'blame' people."
To gain that trust, Berner gave her employees a management task that until her appointment had been the responsibility of a manager she described as "authoritarian." "I fired the manager and told the employees that I was not hiring another manager for awhile; that they knew the production process better than anyone, and I would run production with their help," Berner says. "We did that successfully – one of the first changes I made was to give them the order schedule for a month at a time. Under the old regime they were sometimes given orders an hour at a time and always kept off balance and unsure of their jobs."
The company's strong culture has helped it weather some difficult times over the last few years. The recent economic downturn occurred just as the organization was about to expand their production space from 20,000 to 60,000 square feet and incur significant debt for the first time in its history. Berner enlisted the help of her people, holding a number of meetings across different departments. Ultimately, every employee was given a say on how to tackle the economic challenges the company faced.
The company chose to move forward with the expansion and increase the company's production capability through "lean manufacturing." One example that had a significant impact on the company's production capabilities was the decision to purchase a CNC Punch Press. Utilizing the machine allowed the company to bring outsourced parts in-house, which resulted in multiple positive outcomes. By producing just the quantity of parts needed for a specific short time period, they eliminated having to purchase overstock and the need to move parts to and from storage.
"With the CNC, we had the ability to program in processes that had previously required manual labor," Berner says. " It also created the opportunity for operators to run more than one machine at a time, increasing capacity. Increased capacity was also recognized in our sub-assembly and assembly departments."
In addition, the organization escalated their marketing efforts and doubled the internal sales team. As a result, the company achieved a 26 percent increase in business in 2002, and a 31 percent increase in 2003. "We could not have produced that much product in our old building, and we rose to meet the challenge of getting the sales, producing the quality products that are Berner's hallmark and providing top-notch customer service," Berner says.
Employees appreciate that "style comes from the top down and open dialogue comes from the bottom up," as Berner puts it.
Nancy Hanicak, a shipping and receiving clerk, says that Berner International is the best company she's every worked for. "It's easy to approach [Berner], and she'll always give you her time," Hanicak says.
Equality is another contributing factor that sets Berner International apart. Regardless of status or education level, Berner treats all of her employees with the same degree of respect. One thing Berner herself has noticed is that when a new employee joins the company from an authoritarian, top-down environment, they are usually hesitant and shy, she says: "What is fun is to watch them blossom, to grow, to open up and make creative suggestions for helping to grow the company."
"I've worked at an autocratic company before and here you have a lot of free reign," says Scott Frankenburg, a sales and customer service representative. "[You can work] at your own pace, schedule and agenda – so long as everything gets done."
The 10-year labor contract is up in 2005 and although Berner admits that there will be things to talk about and negotiate, she is optimistic about the future. "I believe that both sides will make a concerted effort to come to a mutually beneficial agreement," she says.
Company: Berner International Corp.
Web Site: www.berner.com
Industry: Manufacturing
Location: New Castle, Pa.
Number of employees: 54
Sales: $11 million to $25 million
Read more in our Manufacturing Success Stories archive.