Last month there was a great leap forward for employees of Gasan Enterprises Limited (GEL). A new consolidated agreement the company signed with the Technology, Electronics and Communication Section of the General Workers Union (GWU) will lead to the evolution of Performance Management practices within GEL.

The side agreement, effective from 1 January, 2009, and attached to the present Collective Agreement dated 2 March, 2007, has as its hallmark the phasing out of the automatic (notches) increase in wages in favour of a remuneration system that rewards individual performance and promotes teamwork and collective efforts simultaneously.

The mechanism of the new wages’ structure introduced in this agreement includes a ‘Wages Fund’ that would be distributed to employees depending on their individual performance results. Additionally, individuals may benefit from departmental bonuses of which another portion would be added to their respective wage or salary.

The structure is governed by a strategically designed performance management system (Performance Analysis Scheme) enabling the setting up of individual objectives in line with departmental and company goals. It also introduces a number of performance criteria that aim to ensure that individual and team performance will be looked at from a wider spectrum of interdependent factors.

Among other principles, the agreement also introduced minimum entry rates for new employees, incentives for those mechanics who acquire Advanced Technician Qualifications, the creation of a Master Technician Grade and a reduction in the number of non-industrial employment categories.

Although the present Collective Agreement between GEL and GWU expires in December 2010, this agreement has been developed with the spirit of long-term applicability. It was signed by Andrew Mizzi, Section Secretary, and Gaetano Dimech, Shop Steward, on behalf of the GWU and David Gasan, Managing Director, and Joseph Farrugia, Manager – Human Resources and Dealer Standards, on behalf of GEL.