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This is part of a case series. Case (A), set in late 1998, traces the development of HAECO's Works Consultative Committee (WCC) and the factors that contribute to its smooth development, making it a demonstration case to illustrate the potential of self- management consultation as a tool for effective management. Case (B), set in December 1999, tells of the development in HAECO as a result of an announcement by the management of HAECO for the implementation of new pay rules, which effectively and significantly reduced the take-home pay of most employees. A major point in this case was that a large number of employees were dissatisfied with the new arrangement even though the new pay rules had the consent of the WCC. As a result, they established a trade union to represent their views. The case series show the effectiveness or otherwise of staff-management consultation during different economic climates.