News

C-Mac's Succession Plan Implemented

Posted by Aaron Chen on

As of 1st July 2017 a succession plan was implemented at C-Mac where the McMaster family owned business transferred ownership to the new C-Mac workers co-operative.

C-Mac Industries (Aust). Pty Ltd transferred all staff, IP, equipment and business operations to:

C-Mac Industries (Aust). Co-operative Limited.  

            ABN: 79 390 141 108

            Co-operative Registration Number: NSWC32546

Essentially no visible change is evident, C-Mac will still be at the same location, with the same staff, doing the same type of work we have been doing for the last 50 years.

Robert McMaster the present General Manager will be succeeded by Steve Grlyak who will then be responsible for the day to day running of C-Mac. Rob will remain with C-Mac on a part-time basis as one of the directors on the Board and working 1 day per week.

I would like to take this opportunity on behalf of the McMaster families, to thank all our customers, suppliers and peers for their support over the last 50 years. I am hoping due to my retirement this succession model may provide another alternative for other business owners to consider.

To clarify the situation:

C-Mac has the same management, same address, and an enhanced Board. We are looking to make the change seamless.

Over the past 18 months C-Mac has been transforming its self into a co-operative, owned and managed by the workers. This has involved the employees running and managing the business for this time and I have moved to semi-retirement, only working three days per week.

During this time the business has been managed by the same management team ably assisted by Dr Anthony Jensen, a world authority on Co-operatives and Frank Webb CPA, a management accountant with a 20 year history in business coaching and team development who was engaged as a mediator between myself and staff to facilitate the process.

We have also recruited John Cooke as our Board Chairman; he has extensive experience in manufacturing and business development and is a well-recognised authority on ‘TQM’, LEAN, JIT, ISO9001 and all the other ‘modern’ manufacturing methodologies for improved efficiencies and customer service, whilst developing high level expertise in strategic “change management”, leadership development and culture management.

More importantly you have the same team that you have been working with for the past 10 years, with Steve Grlyak, Luke Rigg, Eric Van Niekerkand and the people most motivated to see this business survive, the employees, the new owners of C-Mac.

PLUS, I will still be there supporting the business, transferring my skills and expertise to the staff and business and continuing to promote C-Mac.

I emphasise, all that has changed is the structure, this may make you feel a little uncomfortable, however, it has been a 6 years journey for me, my family and the team here at C-Mac.

Let me assure you that C-Mac is here for the long haul that is why we created the co-operative.

There are many advantages and opportunities associated with co-operatives.

  • C-Mac’s Co-operative Rules and Regulations require strict governance by the Board which includes 2 external directors, 2 internal directors, and the CEO and staff representative.
  • Participative management practices lead to more informed decision making and the development of a “High Performing Work Place” which leads to greater profits and benefits for the business and workers.
  • Staff take more pride and responsibility for their work
  • Empirical studies overseas show that worker owned and operated businesses out-perform way in excess of proprietary limited companies.

Example: Employee-owners had 92% greater median household net worth than non-employee-owners. They also had 33% higher income from wages, more job security (53% longer tenure at their current jobs), and strikingly better employee benefits.

  • 75% of C-Mac staff must agree to sell the business giving, guaranteeing stability and longevity.
  • The seven (7) principles of co-operatives improve people, families and communities http://www.cmac.com.au/employment

I hope that clarifies the situation and thank you again to all suppliers and customers that have been so supportive and encouraging. Looking forward to a long and profitable future working together.

For and on behalf of the Management Team and the new owners. For more information don’t hestitate to contact Steve Grlyak 0404 053 526 or myself.

C-Mac-News.jpg

To read the full front page news article printed by Business Access got to: http://www.accessnews.com.au/images/publications/WSBA%20July%202017.pdf

or Click here for the details of C-Mac's Press Release

    
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