Performance Management in Warehousing

Engineered Standards

What are Engineered Standards?

Commonly referred to as “performance” or simply “100%”, Engineered Standards refer to the system which attempts to predict the time it takes to complete various tasks on site.

The Company maintains that Engineered Standards are rigorously and scientifically determined to match the performance of an “average worker of average ability”.

They were originally used as a planning tool or a way to determine how bonuses could be paid to workers who were particularly productive.

Every individual is different, and the Company can only expect people to work to the best of their ability, not to an arbitrary number.

This means that the Company can use metrics to calculate numbers of staff needed for a shift, and they can use metrics to indicate that there might be a performance issue (e.g. long unexplained gaps between picking boxes), but they should not formally discipline someone who is genuinely performing to the best of their ability and simply not reaching an arbitrary performance standard.

In addition, DC Delegates have pointed out a number of other concerns with the system:

• Minimal transparency regarding how performance is measured, and there is no transparency or notice given to workers when changes are made.
• ‘Cartons per hour’ metrics appear to change over time.
• Severe congestion in isles shared by order selectors and forklifts can lead to lengthy wait times, engineered standards are not typically measured during these busy periods.
• Workers involved during the engineered standards measurement sessions have been observed to finish their days on as low as 60% performance.

The SDA position on Engineered Standards

There is nothing in the current Primary Connect Agreement which deals directly with Engineered Standards or necessarily holds workers accountable to maintain specifically “100%” performance targets.

It is the opinion of the SDA that individual workers have unique and varied abilities which change over time, making precise performance targets speculative.

It is therefore the Union’s position that it is far more important for team members to be working in accordance with safe work practices; and working consistently. This is what we fought for during the last round of bargaining and which is now in your Enterprise Agreement.

Your rights regarding performance management

The SDA has negotiated robust protections for workers when it comes to performance management.

SDA membership ensures you have support when you need it. At your request, an SDA Delegate of your choice or your Organiser can attend disciplinary meetings with you as your representative.

Clause 9.81. …At all stages throughout the formal disciplinary procedure, the Team Member will be entitled to a support person to be present, or a union delegate and/or union official of the Team Member’s choosing to represent them.

The Company must take into account many factors if they choose to pursue disciplinary action. Meaning your age, level of fatigue, whether you are observing safety requirements – all must be taken into account.

From the Agreement: In determining whether formal performance management needs to take place, Woolworths will consider whether the Team Member is:

• Working in accordance with safe work practices; and
• Working constantly and consistently; and
• Working in a way which meets Woolworths’ expectations; and
• Any other relevant matter.

Steps the company must take when managing performance:

• Informal coaching and guidance
• Issuing a Performance Improvement Plan, which may include retraining as appropriate
• Advanced notice of first written warning
• First written warning
  • At least one month wait before the next step
• Advanced notice of final written warning
• Final written warning
  • At least one month wait before the next step
• Advanced notice of show cause process
• show cause process which may result in termination

As you can see, there is a significant series of steps the Company must take, including time delays, before attempting to terminate an employee based on performance management. At every step the SDA is ready, willing and able to assist members.

The SDA is not aware of any of its members having come close to termination for performance since these protections came into effect.

For more information refer to the Enterprise Agreement or contact the SDA

Primary Connect PRDC Enterprise Agreement 2022

Worrying trends in the warehousing industry

Companies such as Amazon are leading the charge in unsafe and dehumanizing labour practices.

At Amazon’s Fulfilment Centres, around the world, it has widely been reported that the workplace is built around a culture of fear where performance is timed to the second.

High-pressure algorithmic targets make workers feel like they can’t stop to hydrate or go to the toilet.

Employees have alleged that the pressure to meet quotas necessitates the cutting of corners when it comes to safety and eventually leads to injury and burnout.

Workers can be sent home early without being paid for the rest of their shift when orders are completed; and everyone is employed as a casual and constantly anxious about whether they’ll get another shift.