rs as well as the clerical staff. Managers and executives are not covered by union contracts and have different benefits than the union. Although some of the recommendations discussed later on relate to positions that the company should take in regard to its contract negotiations, the focus of this report is on the non-union personnel since that is where the most immediate impact can be made, and where some critical problems are housed.
National Steel has adopted a program of profit sharing that is based on the company's overall performance, but which is released according to individual plant performance. Based on this information, Granite City is able to see that although it is one of the most profitable operations of the entire company, it does not receive any more compensation from the profit-sharing plan. There is perceived ill will between the various divisions which, while apparently not affecting performance outright, does not enhance employee morale.
At this point, the company faces a high turnover rate among its management and professional staff members (who are not union), particularly among engineers and other younger workers who are hired directly from school. Although the company spends a great deal of time and expense training these workers in the steel industry and in Granite City's own procedures, they often leave for other employment within a few years. This is a problem since the company is having difficulty retaining qualified employees who can move into management positions in the future. The mill does not have a similar problem since its workers tend to stay with the organization for the duration of their working lives.
The company also has a tenuous relationship with its union. During the last strike, in 1993, the company's executives moved into the company facilities in order to avoid havin
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