tion lines between the functions of different categories of workers, an elaborate job classification system, redundancy benefits and practices and other differing union requirements which inhibit efforts by management to create a flexible work force and integrated flow of product throughout the plant. Rheem Sydney is 100 percent unionized. It has relatively harmonious relationships at its other water heater plant in Melbourne where labour productivity is generally higher. Whereas Leisure Co. wishes to use enterprise bargaining to achieve greater uniformity company-wide in work awards and employee practices, Rheem Sydney, while wishing to impose more uniformity in labour practices at the Sydney plant, does not wish to impose centralized union agreements on all its plants, which would interfere with the operations of the Melbourne plant, Moreover, it wishes to promote rather than discourage initiative at the Sydney plant and push down operating decisions to the lowest level which is consistent with operating efficiency.
Leisure Co. operates a highly labour intensive business in which a large part of its cost structure is variable. It relies heavily on part-time employees, 44 percent of its work force, which inhibits the development of company-wide skills and loyalty, but permits it to respond to the highly volatile and seasonal nature of demand for its diverse services.
Rheem Sydney operates a capital intensive business in which fixed costs are relatively high, including a good portion of labor costs which are fixed in concrete by government requirements and nationally negotiated labour agreements. It makes little use of temporary employees, except in limited areas such as maintenance. Demand for its product is relatively stable. Whereas Leisure Co. is in a highly competitive market, which is largely made up of foreign tourists, Rheem Sydney and its sister Melbourne plant sells most of their products in the domestic Australian ma...