The European Model
The Super EU banner was developed by a division operating 65 supermarkets, a
warehouse, and a central office in London. The division closed in 1996 after losing
money for many years. Its management then worked out a new store layout and
negotiated a unique labor/management agreement with its unionized labor. Under
the new agreement which was known as the Gain Sharing Program (GSP),
unionized employees were called "associates" and given a voice in how the stores
were run. Their wages were 15 percent lower than before but they received an
additional incentive bonus based on the relationship between the total wages of the
store and the store’s sales revenue. With successful execution, associates could
earn slightly more than they had previously.
In 1997, the division restarted operations under the Super EU banner. Starting
with 23 stores, by year end it was operating 35 stores. By 2001 it was EXPO’s most
profitable divisions and had 140 stores across England. EXPO’s Annual Report
stated: “The Gain Sharing Program in an entrepreneurial environment translates
into high morale, outstanding customer service, and an atmosphere of
neighborliness.” All Super EU stores qualified for bonuses and 28 percent
exceeded expected savings between 1997 and 2001, providing employees with above
standard bonuses.
The European ModelThe Super EU banner was developed by a division operating 65 supermarkets, awarehouse, and a central office in London. The division closed in 1996 after losingmoney for many years. Its management then worked out a new store layout andnegotiated a unique labor/management agreement with its unionized labor. Underthe new agreement which was known as the Gain Sharing Program (GSP),unionized employees were called "associates" and given a voice in how the stores were run. Their wages were 15 percent lower than before but they received anadditional incentive bonus based on the relationship between the total wages of thestore and the store’s sales revenue. With successful execution, associates couldearn slightly more than they had previously.In 1997, the division restarted operations under the Super EU banner. Startingwith 23 stores, by year end it was operating 35 stores. By 2001 it was EXPO’s mostprofitable divisions and had 140 stores across England. EXPO’s Annual Reportstated: “The Gain Sharing Program in an entrepreneurial environment translatesinto high morale, outstanding customer service, and an atmosphere ofneighborliness.” All Super EU stores qualified for bonuses and 28 percentexceeded expected savings between 1997 and 2001, providing employees with abovestandard bonuses.
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