MEADOW CONTAINER CORPORATION: Maybe Tomorrow

Case 10

When the Clark Special Economic Zone in Pampanga opened its gates for investors in light and medium
industries, the Meadow Container Corporation (MCC) was among the first ten companies to locate in the zone’s
premises. MCC manufactures containers of various shapes and sizes which are used by manufacturers of the
industrial chemicals, food products, cooking oil, motor oil, and others.

The production department of MCC is headed by Engineer Reynaldo Madrid, a licensed mechanical
engineer. He is a tickler for discipline. When even small mistakes happen in his department, he personally calls
the offending employees and metes the appropriate penalty. As a result, his department was judged best in
efficiency. Very minimal wastages in materials and time were recorded by the department.

Under the direct supervision of Engineer Madrid are 10 supervisors who are graduates of engineering
courses and with an average of three years work experience. Ten workers report to a supervisor. All of the
workers are in high school graduates. All employees including the supervisors and the workers are paid on a
monthly basis. The workers, however, are required to produce a minimum number of units per day.

During slack seasons, workers are engaged only from 50% to 75% of their normal working hours due to
lack of sufficient job orders. No worker is laid off by the company and everyone receives full pay. This is so
because of the strong recommendation made by Engineer Madriaga to the top management. Slack seasons last up
to three months. At the fourth month, job orders begin to pour in and everybody starts to cover 100% of their
working time.

On the seventh month of the current year, orders were received at more than the normal capacity of the
company. For the first time since the company began operating, the department will be required to work over
time. No additional compensation will be given except for free meals in the evening.

When Engineer Madrid called the department’s entire workforce to a meeting, he explained the
importance of accepting the additional orders and working on them on overtime. He said he is expecting
everybody to lend a hand in additional effort. When he asked for comments, only one indicated his availability.
Engineer Madrid could not believe the cold response of his subordinates.

As the hours pass by, the anger felt by Engineer Madrid gets deeper and deeper and he thinks he can no
longer contain it. He was thinking aloud:

“What kind of people are these? During periods of less work, they are not laid off; and they don’t think of
it is a favor! They could not reciprocate management kindness!”

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