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? / 1 0V /A ST A T E I T E A C H E R S COLLEGE JAN 1 8 1961 L I BRARY Impact ofAutomation A C O L L E C T IO N C H A N G E , FR O M O F THE B u lle tin 2 0 A R T IC L E S A B O U T T E C H N O L O G I C A L M O N TH LY N o. LABO R R E V IE W 1287 U NITED STATES D E PA R TM E N T O F L A B O R J a m e s P. M it c h e ll, S e c r e ta r y BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner OTH ER BLS PU BLICATIO N S O N A U TO M A TIO N A N D PRODUCTIVITY ADJUSTMENTS TO THE INTRODUCTION OF OFFICE AUTOMATION (B ull. 1276, I960), 86 p p ., 50 cents. A study o f some implications of the in sta lla tion o f electronic data processing in 20 o ffic e s in private industry, with sp ecia l reference to older workers. STUDIES OF AUTOMATIC TECHNOLOGY (Free). A series o f case studies o f plants introducing automation. Describe changes and implications fo r productivity, employment, occupational requirements, and industrial rela tion s. A CASE STUDY OF A COMPANY MANUFACTURING EIECTRONIC EQUIPMENT. THE INTRODUCTION OF AN ELECTRONIC COMPUTER IN A LARGE INSURANCE COMPANY. A CASE STUDY OF A LARGE MECHANIZED BAKERY (Report 109). A CASE STUDY OF A MODERNIZED PETROLEUM REFINERY (Report 120). A CASE STUDY OF AN AUTOMATIC AIRLINE RESERVATION SYSTEM (Report 137). TRENDS IN OUTPUT PER MAN-HOUR IN THE PRIVATE ECONOMY, 1909-1958 (B u ll. 12l*9, 1959), U7 pp., 50 cents. Indexes of output per man-hour, output, and employment in major sectors. factors a ffectin g changes. INDEXES OF OUTPUT PER MAN-HOUR FOR SELECTED INDUSTRIES, 1939 and 19U7-59. (July, I960), 16 pp. Free. Analysis of trends and Annual Industry Series, Indexes o f output per man-hour, output per employee, and unit labor requirements fo r 22 industri including coal and metal mining, various foods and fib e rs , basic s te e l, e tc . COMPARATIVE JOB PERFORMANCE BY AGE: OFFICE WORKERS (B ull. 1273, I960), 36 p p., 30 cents. Compares the job performance o f s ix age groups, including output per man-hour, accuracy, and con sistency o f performance. Covers 6,000 employees in industry and government. PRODUCTIVITY: A BIBLIOGRAPHY (B ull. 1226, 1957), 182 pp., $1. Covers nearly 900 references to a r t ic le s , books, papers, pamphlets, and reports on productivity measurement, factors a ffectin g productivity, and significance o f productivity changes. Sales publications may be purchased from the Superintendent o f Documents, Washington 25, D. C. or from regional o ffic e s o f the Bureau o f Labor S ta tistics at the addresses shown below. Free publi cations are available, as long as the supply la s ts , from the Bureau o f Labor S ta tis tics , U.S. Depart ment o f Labor, Washington 25, D. C. Regional O ffice s : New England Region 18 Oliver Street Boston 10, Mass. Middle Atlantic Region 3Ul Ninth Avenue New York 1, N. Y. Southern Region 1371 Peachtree Street, N. E. Suite 5U0 Atlanta 9, Ga. North Central Region 105 West Adams Street Chicago 3, 111. Western Region 630 Sansome Street San Francisco 11, C a lif. Impact of Automation A C O L L E C T IO N O F 2 0 A R T IC LES A B O U T T E C C H N O L O G IC A L C H A N G E , FRO M THE M O N TH LY LA BO R R EV IEW B u lle tin N o . 1287 November 1960 UNITED STATES DEPARTMENT OF LABOR James P. Mitchell, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. Price 60 cents PREFACE A u t o m a t io n a n d o t h e r c h a n g e s i n t e c h n o l o g y h a v e a n im p o r t a n t im p a ct on v i r t u a l l y a l l a s p e c t s o f i n d u s t r i a l l i f e . New t e c h n o lo g y c o n t r ib u t e s t o th e c o n t in u e d g ro w th o f p r o d u c t i v i t y u n d e r ly in g A m e r ic a n s h ig h s ta n d a r d o f l i v i n g . A t t h e sam e t i m e , i t c r e a t e s s o c i a l a n d e c o n o m i c p r o b le m s s u c h a s l a b o r d i s p l a c e m e n t and o b s o le s c e n c e o f s k i l l s . F or t h is r e a s o n , t h e r e i s deep p u b lic i n t e r e s t i n th e p r o g r e s s o f t e c h n o l o g i c a l ch a n ge and c o n c e r n w ith t h e p r o b le m s o f a d j u s t m e n t . T h is p u b l i c a t i o n i s a c o m p i l a t i o n o f 2 0 a r t i c l e s t h a t h a v e a p p e a r e d i n t h e M o n t h ly * L a b o r R e v ie w o v e r t h e p a s t years. T hey d e s c r ib e v a r io u s l a b o r a s p e c t s o f a u to m a tio n and t e c h n o l o g i c a l ch a n ge. The a r t i c l e s a r e b a s e d o n s t u d i e s , r e p o r t s , a n d s p e e c h e s b y r e s e a r c h w o r k e r s a n d o f f i c i a l s o f G o v e r n m e n t, l a b o r , m a n a g e m e n t,a n d u n i v e r s i t i e s . The a r t i c l e s a re grou p ed u n der th re e h e a d in g s , a s f o l l o w s : P a rt I c o n ta in s a r t i c l e s p r e s e n tin g g e n e r a l su rv e y s o f a u t o m a t i o n a n d s u c h d e v e lo p m e n t s a s a t o m i c e n e r g y a n d t h e i r s o c i a l im p lic a t io n s • P a rt I I co v e rs a r t i c l e s m a tio n on i n d u s t r i a l r e l a t i o n s i n b a r g a in in g r e l a t io n s h ip s . d is c u s s in g th e e f f e c t s o f a u to g e n e r a l and on s p e c i f i c c o l l e c t i v e P a r t I I I c o n s i s t s m a i n l y o f a r t i c l e s s u m m a r iz in g c a s e s t u d i e s made b y t h e B u r e a u 's D i v i s i o n o f P r o d u c t i v i t y a n d T e c h n o l o g i c a l D e v e lo p m e n t s . The f u l l s t u d i e s a r e a v a i l a b l e f r o m t h e D iv is io n . The f i n a l a r t i c l e d e a l i n g w i t h a u t o m a t i o n i n t h e F e d e r a l G o v e rn m e n t i s b a s e d o n r e c e n t C o n g r e s s i o n a l h e a r i n g s . i CON TENTS Page P art I . G e n e r a l S u rv e y s o f A u to m a tio n a n d T e c h n o l o g i c a l D e v e lo p m e n ts .................. A R e v ie w o f A u to m a tic T e c h n o lo g y ................................................................................ S o c i a l I m p l i c a t i o n s o f T e c h n o l o g i c a l P r o g r e s s ................................................. Im p a ct o f T e c h n o l o g i c a l P r o g r e s s on L a b o r and S o c i a l P o l i c y ............... An I n q u i r y i n t o th e E f f e c t s o f A u to m a t io n ........................................................... L a b o r 's Aims i n A d j u s t i n g t o t h e New T e c h n o l o g y . . . ............ ......................... L a b o r I m p l i c a t i o n s o f P e a c e f u l U ses o f A to m ic E n e r g y . . ........................... W o r k e r s ' H e a lth i n an E ra o f A u to m a t io n ................................................................ 1 3 11 15 20 28 32 U3 P a rt I I . E f f e c t s o f A u to m a tio n on I n d u s t r i a l R e l a t i o n s i n G e n e r a l and on S p e c i f i c C o l l e c t i v e B a r g a in in g R e l a t i o n s h i p s ................................................... U7 The E f f e c t o f A u to m a tio n on I n d u s t r i a l R e l a t i o n s .......................................... k9 P a p e r From th e F a l l AMA P e r s o n n e l C o n fe r e n c e : Some P ro b le m s o f C h a n ge............................................................................................ 5U W a g e-R a te D e t e r m in a t io n i n an A u tom ated R u b b e r P l a n t ................................ 56 Im p a ct o f A u to m a tio n on Ford-UAW R e l a t i o n s h i p s . . . . . . .................................. 58 L o n g s h o r in g and M e a tp a c k in g A u to m a tio n S e t t l e m e n t s ......................................... 62 M a in te n a n ce o f Way E m ploym ent: I. T e c h n o l o g i c a l D is p la c e m e n t i n Em ploym ent a n d P o s s i b l e M o d e r a tin g M e a s u r e s ................................. 65 II. C y c l i c a l and S e a s o n a l I n s t a b i l i t y and P o s s i b l e R e m e d ia l M e a s u r e s ..................................................................................................................... 71 P a rt I I I . A d ju s tm e n ts t o A u to m a tio n : Sum m aries o f C ase S t u d ie s and A r t i c l e s on O f f i c e A u t o m a t io n ...................................................................................... 77 A d ju s tm e n ts t o A u to m a tio n i n Two F ir m s .................................................................. 79 A d ju s tm e n t t o A u to m a tio n i n a L a rg e B a k e r y ........................................................ 8U L a b o r A d ju s tm e n ts f o r C hanges i n T e c h n o lo g y a t an O i l R e f i n e r y . . . . 88 A d ju s tm e n t t o an A u to m a tic A i r l i n e R e s e r v a t i o n S y s te m .............................. 93 E x p e r i e n c e s W ith t h e I n t r o d u c t i o n o f O f f i c e A u to m a t io n ........................... 96 The R e a c t i o n s o f E m p loyees t o O f f i c e A u t o m a t i o n . . . . . . . . . . . . ............... 1 0 1 O f f i c e A u t o m a t io n - in th e F e d e r a l G o v e r n m e n t ........................................ iii 109 Part I. General Surveys of Automation and Technological Developments 1 A Review of Automatic Technology T h e M eaning, O u tlo o k, an d Im p licatio n s of A m erica’s M o st R e ce n t In d u stria l D evelo p m en t E dgar W e in b e r g * u t o m a t i c t e c h n o l o g y , autom ation, or autom atization are terms w idely and interchangeably used to describe the m ost recent phase o f Am erican industrial developm ent. T h ey cover the increas ing use, b o th in offices and factories, o f various types o f laborsaving equipm ent having virtually continuous and, in some instances, self-regulating operation. Instead o f small changes to achieve greater efficiency, as in traditional m anagem ent practice, recent innovations often involve exten sively replanning the flow of w ork and the layou t o f plants and offices, and com pletely redesigning products for greater autom aticity in production. W hile these changes are hailed as the beginning o f a new era, they are in principle a continuation o f past trends. T h e purpose of this article is to describe the basic principles and some leading examples o f autom atic technology, to set forth some factors to be considered in estim ating its rate of growth, and to discuss some general im plications: continuous flour mill, B abbage's calculator, Jac quard's card controlled loom , and W a tt's a u to m atic controls for his steam engine. T h e 19th century saw the steady im provem ent in speeds, capacity, and efficiency o f machines, and their use in virtually every a ctivity o f the econom y. T h e 1920's ushered in the m ass-production phase o f industrial developm ent. Ewan Clague, in the July 1926 M o n th ly L a bor R eview , described im provem ents in m achinery and processes o f that period as a “ new industrial revolution . . . the m ost rem arkable advance in p rod u ctivity effi ciency in the history o f the m odern industrial system ." M achine operations in m ass-production plants were m ade uniform, reduced to routine, and subdivided into simple tasks. Th e worker's jo b becam e a m achine-paced operation on a highly standardized product, with m echanical con veyors em ployed to bring the w ork and carry it to the next step o f a sequence. This type o f specializa tion resulted in great increases in p rod u ctivity but also in greater m on oton y for the operator o f produ ction m achines and the man on the assembly line. A u tom atic technology, starting with the cumu lative accom plishm ents o f the past, introduces the possibility o f eliminating direct human interven tion in operating, guiding, ’ and feeding machines and in controlling processes. Instead o f the worker, specialized mechanisms with cap acity for A Background T o d a y 's technological developm ents carry for ward the search begun in the 18th century for new m echanical w ays o f displacing man as a source of energy in production. T h e Industrial R e v o lu tion, the first phase o f this m ovem ent, m arked the transition from dependence on hand labor to the application o f pow er-driven m achinery. M a n y of the principles o f autom atic techn ology can be traced to such early developm ents as Oliver E va n 's Ju n e 1955 *Of the Bureau’s Division of Productivity and Technological Develop ments. 3 duced. T h e basic principles are often unchanged, but im provem ents in speeds and cap acity m ay greatly reduce the labor required for a unit o f output. A recently developed autom atic filling machine, for example, packages cans w ith 4 ounces o f semi solid b a b y food, “ untouched b y hum an hands,” at the rate o f 800 per m inute. Th e w orker’s function is limited to manual pushbutton starting and stopping, observing and adjusting th^ per form ance to correct m alfunctioning, and repair and m aintenance o f the m echanism . Such routine decisions as determ ining when a can is filled are m ade b y tireless, highly accurate, specially designed devices built into the m achine. N ew m odels o f autom atic machines frequently incorporate devices to save labor in inspecting, gaging, and testing, as well as fabricating opera tions. A lso, labor in servicing m achinery is now econom ized b y means o f autom atic lubrication systems w hich distribute a precisely measured volum e o f oil to bearings at regular intervals w ithout direct hum an intervention. Th e possibility o f m echanizing an industry through intensive research on the redesign o f the produ ct as well as o f the fabricating m achinery is illustrated b y new techniques o f produ cing elec tronic parts. Previously, it has not been practical to devise laborsaving mechanisms for duplicating the com plex hand m anipulations o f produ cing and assembling electronic com ponents. A ccord in g to a B L S study, assembling operations em ployed, in January 1953, about 30 percent o f the work force in the electronics indu stry.1 W ith the trem endous civilian and m ilitary dem and for electronics ou t put, the need for tim e-saving autom atic fabricatin g m ethods has becom e urgent. A k ey developm ent in the m echanization o f electronics m anufacture is the fabrication o f the printed circuit board. Instead o f hand-wired circuits, condu ctin g patterns are now etched o r stenciled on plates b y means o f specially designed machines. T h e results are a considerable econ om y in tim e and a high degree o f uniform ity o f m anufacture. A noth er im portant developm ent is the m anu facture o f equipm ent for attaching standard elec tronic com ponents to printed circuit boards. Assem bling these parts can now be done m echani- elem entary sensing, discriminating, and counting, can now perform routine tasks o f handling m ate rials and inform ation with a high degree o f relia bility. A s this new m ovem ent progresses, jo b op por tunities in m ore com plex control, service, distribu tive, and creative functions becom e relatively m ore im portant in total em ploym ent. M a n y less skilled job s becom e obsolete. A grow ing aware ness o f the readjustm ents that m a y be required to conserve human values is accom panying these industrial changes. A u tom atic technology, wisely applied, as N orbert W iener suggests, holds prom ise o f “ m ore human use o f human beings.” Recent Developments R ecen t innovations leading tow ard m ore auto m atic tech n ology in industry m ay be grouped in four categories: (a) autom atic m achinery; (b) integrated materials handling and processing equipm ent; (c) autom atic control system s; and (d) electronic com puters and data-processing m a chines. T h e first tw o categories cover examples o f advanced m echanization based on engineering principles already familiar in industry. T h e latter tw o encom pass innovations largely developed out o f experience during W orld W ar I I in the new fields o f electronics, control, and com m unication engineering. Th e emergence o f this techn ology is part o f the general acceleration o f the N a tion ’s econom ic grow th follow ing W orld W ar II. T h e availability o f the results o f wartim e research, large expendi tures for new plant and equipm ent, and the con tinued need for a large volum e of defense items have greatly stim ulated the production of new types of equipm ent. Like E li W h itn ey ’s system o f interchangeable musket parts m anufacture, production principles found useful in speeding the ou tp ut o f arms are now used to g ood advantage in civilian industries. Som e types o f specialized m achinery which carries out a pre-set cycle o f operations with almost no hum an intervention is found tod a y in virtually all plants having a large ou tp u t o f standardized goods. N ew m odels o f autom atic glassmaking, textile-spinning, and paperm aking m achinery, printing presses, and wire-drawing machines are constantly being intro A utom atic M a ch in ery. 1 Electronics Employment and Labor Force, Monthly Labor Review* October 1953 (p. 1049). U cally at significantly higher rates o f speed than b y manual m ethods. In P roject T in k ertoy, a re search program con du cted b y the N ational Bureau o f Standards in cooperation w ith private firms, the com ponents themselves are produced m echani cally, using the m odular principle o f design. T hus, parts o f standard circuits are printed on ceram ic wafers w hich are then m echanically join ed in various com binations into a variety o f electronic com ponents. Integrated M a teria ls-H an d lin g and P rocessing A s faster and larger autom atic m a chines reduce the am ount o f labor directly engaged in fabricating operations, engineers are turning their attention to developing m echanical w ays o f saving labor in the m ovem ent and handling o f materials. T h e im portance o f this fun ction (in terms o f m an-hours o f em ploym ent) is illustrated b y the experience o f one large m anufacturer o f electrical apparatus. (See table.) T h e trend tow ard m ore elaborate processing o f raw materials serves to m ake the m ovin g o f goods w ithin plants increasingly m ore significant. M anual loading and unloading o f goods in process, m oreover, are often too slow to perm it full utilization o f the new high-speed produ ction m achinery. T h e m etalw orking industries, n ota bly auto m obiles and ordnance, p rovide som e o f the m ost striking examples o f the integration o f materials handling and processing to achieve continuous production. Indeed, the w ord “ autom ation ” was coined b y D . S. H arder o f the F ord M o to r C o. to refer to “ the autom atic handling o f discrete parts betw een progressive processing operations.” A u tom ation in this sense is n ow applied in the m achining o f engine blocks, pistons, ring gears, crankshafts, and 155-mm. shells. Like the assem b ly line of the 1920,s, m ethods o f m aterials handling used in the autom obile industry are also being im itated b y other m etalw orking plants producing large volum es o f standardized goods. A basic feature o f this typ e o f autom atic p ro duction is the linking together o f high-speed autom atic m achine tools so that a predeterm ined sequence o f boring and drilling operations can be perform ed on a standardized part, such as an engine b lock , w ith virtually no direct hum an labor. E xtensive use is m ade o f specially built pow ered E q u ip m en t * Case Study Data on Productivity and Factory Performance—Fertilizer. BLS Report 63, May 1954. 5 D is trib u tio n o f produ ctive m a n -h o u rs in a larg e electricala p p a ra tu s m a n u fa c tu rin g c o m p a n y , by m a jo r o p e ra tio n ,1 9 4 8 Operation Total......................................... .............................. Assembling__________________________________ Materials handling L _________________________ Machining___________________________________ Testing...........................-........................................ Finishing........................... -.................................... Other_______________________________________ Percent of total pro ductive man-hours 1 0 0 .0 27.3 26.8 21.7 12.9 4.5 6 .8 1 Does not include materials-handling work performed by skilled labor as part of normal activities. Source . Adapted from table 1 in an article entitled “ Materials HandlingCurrent Experience and Evolving Principles,” by R. W. Mallick, appearing in American Management Association Production Series 184: Organizational Teamwork in Production, New York, 1948. conveyors, or “ shuttles,” to transport the w ork from m achine to m achine; o f pneum atic, hydraulic, and electrical devices to turn, load, position, and u n load; and o f tim ing mechanisms to synchronize the m ovem ent o f parts being processed. Inspec tion after certain operations is also done auto m atically. T h e result is a continuous flow o f p roduction, except for brief interruptions for changing w ornout tools and m aking repairs. Integrated handling and processing equipm ent is also being introduced to save labor in the m etal form ing and finishing departm ents o f m etal w orking plants. C on veyors and chutes are now extensively used to m ove sand and h eavy castings in foundries. “ Iron fingers” autom atically load and unload h eavy presses and stam ping machines. In one large plating plant, autom obile bum pers pass continuously through a 31-step process, guided b y a com bination o f shuttles and elevators. Operators at an electrical con trol panel check the process at numerous points. Significant advances toward m ore autom atic operations have also been m ade in the handling o f bulk materials. N ew plants for processing such bulk materials as cake m ix and grain are now built around a system o f belt conveyors, gravity chutes, and pneum atic tubes to provide a continuous flow from raw m aterial to finished produ ct. A fertilizer plant studied b y the Bureau o f L a b o r Statistics,2 for exam ple, com bines several processing operations into a single autom atic sequence, from loading to bagging, b y means o f autom atic weighing hoppers, screw conveyers, and chutes. Longer, faster m oving, and larger cap acity belt conveyers are increasingly used to reduce manual handling in transporting coal in mines and utilities, loading and unloading ships, and m ovin g bulk m aterials at construction sites. T h e R iverlake B elt C on veyer P roject proposes to carry coal and iron ore betw een L ake E rie and the Ohio R iv er with a m inim um o f handling via a 103-mile continuously m ovin g “ rubber railroad.” In sum m ary, increasing integration o f materialshandling and fabricating operations means fewer w orkers on job s involvin g prim arily physical strength. Greater use o f m achinery for these tasks, how ever, requires workers skilled in the repair and m aintenance o f costly equipm ent, engineers trained in designing new m achinery and plant layouts, and m anagem ent executives capable o f directing technicians and coordinating mass produ ction and mass distribution. operator receives inform ation abou t the results o f a process, m entally com pares it w ith the desired perform ance, and makes adjustm ents in the input, if necessary, to achieve the predeterm ined stand ard perform ance. L ike the hum an nervous sys tem , one scientist suggests,4 closed-loop system s have the rem arkable ability to control the applica tion o f a substantial am ount o f force w ith a m inim um expenditure o f energy. T h e operation o f autom atic control is exem plified b y the simple closed-loop circuit used to con trol room temperature. In this fam iliar case, a sensing device o f the therm ostat measures the controlled variable, room tem perature. T h e read ing is then autom atically com pared w ith the pre set desired value. I f som e deviation or error is detected, a signal is transm itted to the servom otor or starting switch o f the furnace which operates until the desired tem perature is reached and then stops. A new factor that alters the room tem perature beyon d the tolerance allowed sets off this self-regulating system anew. Plants converting raw materials into finished products through som e form o f chem ical process ing are m aking increasing use o f autom atic control instruments. Self-regulation o f the tem perature, pressure, flow, and level o f liquids and gases in these processes is often achieved b y networks o f control instruments. M aterials han dling in and ou t o f processing tanks, pipes, and cham bers is naturally continuous. T h e result is com pletely autom atic p roduction, from the input o f raw material to the ou tput o f finished products. N otable examples o f w hole plants built around autom atic controls are found in the petroleum refining and chem ical industries, including atom ic processing, which have expanded their ca p acity fairly rapidly since the end o f W orld W ar II. Other industries where scientific experts believe advanced planning now aims at fully autom atic plants are cem ent, beverages, paper products, telephone and telegraph, and electric power. Som e industries, such as steel, m ake extensive use o f instrument control in im portant steps o f the processing. A s chem ical processing is substituted for m echanical operations in other industries such as W id er U se o f A utom atic Controls. W ith the largescale use o f autom atic control devices in industry, a new phase o f the lon g process o f substituting m echanical for hum an energy begins. H itherto, technological progress has been concerned pri m arily w ith the transfer o f m anual skills from m an to m achines, the worker rem aining a con troller and director. N ew developm ents involve the use o f im proved devices for such operations as sensing, measuring, com paring, and rem em bering, as well as operating in a predeterm ined manner. C on trol o f m achines b y other m achines or com pletely self-regulated produ ction now b e com es possible. A lthough autom atic con trol devices have long been used in the operation o f the telephone system and industrial furnaces, their diffusion on a large scale was greatly speeded b y new know l edge and experience gained during W orld W ar I I . T h e collaboration o f engineers, scientists, and m athem aticians in designing servom echanism s for gun positioning, radar, and so forth, as P ro fessors B row n and C am pbell o f the M assachusetts Institute o f T ech n ology have pointed out, “ soon focused attention on the essential principles that apply to all control system s.” 3 Th e basis for autom atic con trol o f industrial processes is the technique o f “ feed b ack .” Briefly, feedback con trol exists when inform ation a bou t the ou tp u t at one stage o f a process is returned or fed b ack to an earlier stage so as to influence the process and hence change the ou tp u t itself. This closed loop betw een input and ou tp u t con trasts w ith open-loop controls where a human * G. S. Brown and D. P. Campbell, Control Systems. (In the Scientific American, New York, September 1952, p. 59.) <J. G. Kemeny, Man Viewed as a Machine. (In Scientific American, New York, April 1955, p. 58.) 6 m e ta l r e fin in g , d o u b t w ill u r in g F o r fo r th e u se in s tr u m e n ts a c o a tin g v a r n is h , A n a ls o n ew c o n tin u o u s m a k es a n iz e d b e tte r th a n a u to m a tic c o n tr o ls Im p ro v e m e n ts p r o m is e g age m o re in n o E l e c t r o n i c m e a s a p p lic a tio n s . p le x ity , th e r a d io a c tiv ity in c r e a s in g ly m e a su re m en t ex a ct o f o f th ic k a u to m a tic to in o b je c tiv e m a n y o f o p e r a tio n s is q u a lity a n y o f th e se u s in g a lr e a d y th e fin e r p ro d u c ts la r g e -s c a le o f h ig h ly m a d e s a v in g o f to m e ch p o s s ib le , d e v e lo p in g A a n d m a jo r d a ta -p r o c e s s in g la b o r . o r g a n iz e d D i r e c t la b o r is a lr e a d y a r e la t iv e ly s m a ll p r o p o r t io n tr o n ic o f tio n th e w o rk fo r c e . A B L S stu d y o f r u b b e r p la n ts , fo r e x a m p le , in d ic a te d d ir e c tly en gaged c o m p r is e d la b o r .5 in g , p rocess a b o u t a M a in te n a n c e , an d o th e r im p o r ta n t T h e to o ls in o n ly overh ea d la b o r o f fe e d b a c k th e p r o d u c tio n in c o n tin u o u s 1 9 49 p la n t th e to in d u s tr ie s o f s ta n d a r d iz e d n o t e q u ip m e n t o th e r th e m o st p a rts, an d to m a ss a u to m a tic , m a c h in e g e n e r a lly n o t to o ls stu d y tio n , to o ls m is s ile s T h e o f fo r p r o d u c in g s m a ll lo t s . W ith th is a u to m a tic d ig ita l c o n tr o l, w ith o u t th e h u m a n to o l is g u id e d in te r v e n tio n o v e r in th e th e m e a s u r in g are fir s t d e v ic e e n g in e e r in g p r o b p h y s ic a l a n a lo g y a llo w im p r o v e b e h a v io r . su ch an d o f e n g in e e r s th e d e s ig n T h e y p r o b le m s a n a ly z in g c o m p u te r u se o f are as th e n o w d e s ig n in g d is tr ib u tio n o p era tes s e r ie s on o f su ch in s tr u c tio n s m e d ia p r e v io u s ly as card s, p a p er or film . T h ese in s tr u c tio n s jo b . P u n c h e d -t a p e as is b e in g a p p lie d to Its a c o u n tin g p r in c ip a l e le c tr ic a l im p u ls e s to fe a p e r fo r m o p e r a tio n s at record ed T h e sp eed s fa r e le c tr o n ic b e y o n d c o m p u te r h u co m in sev eral d a ta -p r o c e s s in g o p e r a tio n s in to on e ta p e , m a g n e tic can b e T h e p r o g r a m m in g , sta n d a rd e n tir e p r o c e s s in g o f d a ta g o es on ch an ged w ith o u t th e m a n u a l tr a n s fe r r in g th e n ex t o f fo r d a ta e x a m p le , o f c a p a b ilitie s . a u to m a tic a lly , each d e v ic e . th e m a c h in e . a fte r t o o l. resp on se b in e s ta p e , its fo r m e a s u r in g a r ith m e tic a l a a n a lo g , c o m p u te rs an d n ew c o m p u te rs u tilitie s . th a n is m a n to a ls o c o n t r ib u t e d ty p e tu re co d e a an d research c o n tr o l o f m a c h in e t o o ls p r o v id e s a fle x ib le m e th o d w o rk a to o f e le c c o m m u n ic a s c ie n tific T h e o f th e or p r o c e ss, w ith o u t c o s tly e x p e r im e n ta s im u la tin g n etw o rk ra th e r o f A n a lo g r e s u lt r e m a r k a b le an sw ers fie ld . c o u n tin g e le c tr o n ic o p e r a tio n s th is o f o f o f e s s e n tia lly o p e r a tio n u sed g u id e d fo r p r o d u c tio n . T a p e th e th e b y is p a st co m p u te r p u rp oses, te le v is io n o f th e d ir e c t ta sk s d ig ita l. d e r iv e p r o b le m . w id e ly d e e c o n o m ic a l fr o m to a c o m p lic a te d m a t e r ia ls -h a n d lin g c u s t o m -b u ilt are th e th e u sed T h e th is en c o n tin u e d in in p r in c ip le s o f th e d e v e lo p e d , is le m s h a v in g fo r b e an d to o ls stre a m ty p e s h as e le c tr o n ic th e b ro a d gen eral a n a lo g an d m a c h in e th o se to d e v e lo p m e n t T w o a u to m a tic s u ita b le s e lf-r e g u la te d , e a r lie r to o f th a n W h ile th e to c o n tr o ls a p p lie s h as fo r c e c o n s id e r a b le e ffo r t m ilita r y t h a t p r o d u c e d r a d io a n d e n g in e e r w ere p o s s ib ility p rocesses. p r o d u c tio n jo b -lo t in to ta l o c c u p a tio n a l c a te g o r ie s . a p p lic a tio n s c r ib e d o f c o m p u ter fo r b eco m e s c o m p u tin g la b o r e n g in e e r s m a c h in e . e n g in e e r in g T h e th e a c o m m e c h a n iz a tio n th e fa s te r is M an d h a n d lin g w o rk an d an d research c o n tr o l. th a t w ork ers a d m in is tr a tiv e , in tr o d u c e s th o u g h s y n th e tic o p e r a tio n q u a rte r n ew a d v a n c e s iz e an d o f r e la te d S c ie n tis ts ra th e r d ir e c t a c c o u n tin g , an d r o c e s s i n g in A lth o u g h p r o p o r tio n c le r ic a l in c r e a s e . a t a - P o f in fo r m a tio n im p o r ta n t. th e D grow s 1 0 y e a r s h a v e th e re fo r e d e v o te d a u to m a tic a d ju s tm e n t in a n d e c o n o m y r e c o r d k e e p in g , g a g ed a d h e s iv e s . p u t e r s w o rk a d v a n c ed , co n tro l o m th e n ew p a p e r , p la s tic s , o r r u b b e r w it h a b r a s iv e s , or C A s c h i n e s . e m p lo y in g n o n co n ta ct p o s s ib le im p o r ta n t c o n tr o ls o f e x te n d e d . e x a m p le , n ess in b e fr o m on e ste p to as in m e c h a n ic a l p r e c is io n sy ste m s. b o r in g m a c h in e s. W h ile th e a d v a n ta g e s o f su ch T h e fle x ib le a u to m a tic c o n tr o ls are r e c o g n iz e d , th e se d e v e lo p m e n t w o r k s t ill r e m a i n s ,” a c c o r d in g h ig h to m a c h in e s “ b e fo r e co n tro l sy ste m s can b e are lo w c o st, a c cu ra te , an d v e r s a tile a ll-a r o u n d r e lia b ility b een o f im p r o v e d . to th e can b e S ta n fo r d h a n d le d R esea rch In s titu te , e le c tr o n ic a lly a t m o re en ou gh th a n fo r an d s te a d ily d e v e lo p e d “ fig u r e s th a t sp eed s h a v e on e A c c o r d in g e x p e rt, c o m p u tin g “ m u ch 1 ,0 0 0 tim e s th e sp eed o f c o n v e n tio n a l u s e .” 6 * Trends in Man-Hours Expended Per Unit: Synthetic Rubber and Components: 1945-49. Bureau of Labor Statistics, processed, 1952. •J. Diebold, What's Needed to Make Tape Control Take Hold. {In Automatic Control, New York, April 1955, p. 48.) 7 Electronic Data Processing. {In Research for Industry, Stanford, Calif.» November 1953, p. 5.) p u n ch ed card d u ced 19 53 in c a p a c ity p ro d u ced * T w o 25 o f th e fir s t b y th e sa m e ty p e s d is tin g u is h e d : 7 e q u ip m e n t .” h a d o f to la r g e 7 A m a c h in e tim e s in co m p u ters s p e c ia l th e p u rp o se in tr o sp eed e le c tr o n ic c o m p a n y d ig ita l th e 3 5 a n d co m p u te r 1 9 4 8 . m a y an d a ls o b e gen eral p u rp o se. S p e c ia l s p e c ia lly d e s ig n e d seq u en ces A o f p u rp o se p a rts co m p u ters to c o m p u tin g p e r fo r m o p e r a tio n s fe w or fin a n c ia l r e p o r t in o f fix e d p ro g ra m s. la r g e m a il o r d e r fir m , fo r e x a m p le , u s e s a m e m o r y u n it an d in v e n to r y co m p u te r to k eep an a n a ly s is , ite m b y ite m , e n t lin e s . A n a ir lin e e m p lo y s c o m p u te r to h a n d le p u r p o s e , h ig h -s p e e d tr a ffic co n tro l an d ta il m e r c h a n d is e T h e a c o n s is t a gen eral v a r ie ty o f p ro g ra m . o p ed in sea t in d e p a rtm e n t p u rp o se o p e r a tio n s n o t In ste a d , a n ew p roced u res s u b je c t T h e to in a ir is re c r e a s in g can h a v in g a u sed fix e d d ig ita l fo r w h ic h s c ie n tific a n d w ere th e is w ith m ilita r y d e fe n s e . d e v e lo p e d T h e ir m o n th s in to a fe w a ir p la n e d e s ig n s , p h y s ic s . o p en N e w an d tim e fo r con a b ility to c o n v e n tio n a l m e th o d s — T h e in g m a r k e tin g m a d e an d m a c h in e s b u s in e s s o f a n ew d a ta e r a in e a r ly in in s c ie n tific n o w r e n ta l in s p e c ia lly p r o b a b ly c o s tly 1 9 53 1 9 5 5 , a b o u t a d o zen as o th e rs m a y h a v e m a c h in e s in s ta lle d th e c o m p u te rs to a g e m e n t, th e fir m s o b ta in fir s t e v e n tu a lly n ew in fo r m a tio n a p p lic a tio n s are h is n o w b e in g p e r fo r m e d b y s lo w e r to d o u b t th e ev er in in b u s in e s s t e c h n o lo g ic a l p e r io d . o n D u a n e s till o f o f th e m a c h in e d is p la c e d O th e r g ra d u a l fo r o ld ch a n g e, th e th e fo u n d g la s s h a n d w ith h a n d a fte r b een in h a n d , in th a t tu b in g p rocess a th e a b o u t y e a rs h a d o th e r r e v e a le d o f p resen t th a t 19 re 1 8 98 several m a k in g c ig a r s , m a k in g th e a t in in d u s tr y s tu d ie s a fte r m e th o d s o n tec h h is e x te n t ev en fille r g la s s th e 19 36 m a c h in e S te rn , in e s tim a te d in w ith o f in te r e s tin g L a b o r ,9 “ is E v a n s u sed a ll lo n g B o r is o f th e M a c h in e th a n a b ru p t e x p e r ie n c e o b serv e d p r o d u c tio n , e c o n o m ic a l a o f is w ith m o re a n y g r a d u a ln e s s W r ig h t a n d h en ce p rogress, th a n p a st “ O n e D . o f w ere i n d u s t r y . 11 tern sh o rt d a ta th e d ep en d s on a n d a ffe c te d p r o b a b le th e a c tu a l a d o p t a u to m a tic fa c to r s p rocesses m e c h a n iz a tio n , W . in 8 h a d in th e s im ila r p a t v a r ia tio n s fr o m on in d u s tr y ta sk s o f P ie c e m e a l illu s tr a te m e th o d stu d y y e a rs u se m a d e a n d a H a n d o f t r o d u c e d . 10 n ear to in o n e -q u a r te r m o re fo r m a n b e in g th e m a c h in e a u to m a tic ity , e c o n o m ic ch a n g e. o f t i m e .” c o m p a n ie s ex p ect o f c o m p le x little n eed ed in d u s tr y m o re C a r r o ll e n tir e ly m a n y is h a n d lin g d ir e c tio n fo re c a st. seem s m e th o d s f u t u r e .8 A lt h o u g h th e re th e d e c is io n s . g rea ter ea ch in d u s tr ie s h a n d th e to d ecad es a su rv e y in th e o f stu d y w ith h a v e in s ta lle d d a ta -p r o c e s s in g m a c h in e s a n d n e a r ly 3 0 to a cco u n t c o m m e r c ia lly a v a ila b le s u lt s ,” b e g in n in g la r g e fo r gen eral w id e * v a r ie t y n o lo g ic a l fo r fo r p ro ce ss th e n o a m e c h a n iz a tio n o f h ig h -s p e e d A c c o r d in g to th e F ra g m e n ta ry p r a c tic a l. d e s ig n e d to o l 3 2 0 cost A lth o u g h d a ta -p r o c e s s in g m a k in g to w a rd ch a n g eo v er are e c o n o m ic s , m a rk ed o ffic e w o r k . research to o ta k e e q u ip m e n t n o w so m e n u c le a r c o m p u ta tio n s a n a ly s is — are in fo r co n tra st d e v e lo p in g o f in fo r m a tio n it w ill t a k e o th e rs, o f in c a lc u p r o b le m s is d iffic u lt ta b le s , e v a lu a tin g in te r in d u s tr y se a so n a l tre n d e le c tr o n ic h a s b een m a th e m a tic a l fo r e c a sts, tro n o m y , s o lv in g p a th w a y s b eca u se w ea th er h o u rs, w o rk p r e p a r in g b a llis tic in r e q u ir e d . m a c h in e , e ffic ie n t v o lu m e A lth o u g h t e le s c o p e t r e m e n d o u s s e r ie s o f c o m p u t a t io n s t a k in g la b le v a lu e in h ig h ly ch an ge n o t e n g in e e r in g r e s e a r c h p u r p o s e s in th e to o k Outlook d e v e l t im e -c o n s u m in g a n a l co m p u ters fo r fo r fo r m e r ly m a n u fa c tu r in g fo r b u ilt-in P r o g r a m m in g fig u r e s e le c tr o n ic e n te r p r is e s b e m u st b e o p e r a tio n s a th a t 1 ,2 0 0 fo r m e r ly n eed ed th e fo r m e c h a n iz a tio n . fir s t n e c tio n an d u sed sto res. p ro g ra m e a c h ,a p p lic a tio n . o f a ls o th a t h ou rs m a c h in e -h o u r s , c o m p a r a tiv e p e r io d in s tr u c tio n s S p e c ia l d em a n d co m p u te r c o m p u te r , h o w e v e r , in v o lv e s y s is are u n it 12 in 2 p rep ares m a n -h o u r s lo n g a s im ila r h ig h -s p e e d a n a ly z e rep o rts th e se d iffe r r e s e r v a tio n s . co m p u ters to 1 2 ,0 0 0 a n d 1 ,8 0 0 u p -to -t h e -m in u te o f m a n -h o u r s to in d u s tr y , d e p e n d in g o n e c o n o m ic m e th o d s. c ir c u m s ta n c e s . A la r g e a p p lia n c e c o m p a n y u ses its e le c tr o n ic S o fa r as th e im m e d ia te fu tu re is con cern ed , c o m p u t e r fo r p r e p a r in g its p a y r o ll, s c h e d u lin g m a b r ie f te r ia ls , a n d p ares to u se h ig h -s p e e d p r e m iu m T h e la b o r c o n tr o llin g in v e n to r ie s . c u s t o m e r s ’ b ills . co m p u ters a c c o u n tin g , p o s s ib ilitie s a p p e a r to b e In su ra n ce o f an d on A u tility c o m p a n ie s p r e m iu m p re an d s a v in g s in r o u tin e A so m e th e gen eral sp read fa c to rs a c c e le r a tin g o f te c h n o lo g ic a l im p r o v e - 8 P. B. Laubach and L. E. Thompson, Electronic Computers: A Progress Report. (In Harvard Business Review, Boston, March-April 1955, p. 121.) 8 Thirteenth Annual Report of the Commissioner of Labor, Washington, Bureau of Labor, Vol. 1,1898 (p. 6). wMechanization and Productivity of Labor in the Cigar Manufacturing Industry, BLS Bull. 600,1938 (p. 1). 11 Productivity of Labor in the Glass Industry, BLS Bull. 441,1927 (p. 6). b illin g , c le r ic a l c h e m ic a l c o m p a n y r e c e n tly r e p o r ts th a t its c o m p u te r p r o d u c e s a r e ta r d in g o f p la n a c tu a r ia l c o m p u ta tio n s . s u b s ta n tia l. r e v ie w 8 a m e n ts su g g e sts g ro w th b u t n ific a n t p ly o f m a d e 1 9 5 5 12 f o u n d in d u s tr y co n tro l s e ll a b o u t 2 9 e x p e n d itu r e s b y flo w o f o f a s m a tic cu ssed m e n t o f th a n an d a u to co st o f th e 1 9 5 4 . v o lu m e d e s ig n . p r o m is e as are to o l o ffe r e d e x c lu s iv e ly n o w in g rea ter th e a n d te c h n ic a l o f jo u r n a ls an d research d is o n th e b a s is o f e q u ip m e n t o v e r a ll in fig u r e s b y th e a n d to U n ite d th e a ll th e fir m s e r n iz a tio n T h e tic u la r ly in ra th er an d in fo r th a n e le c tr o n ic la r g e th e fo r o f P rogress F e d e ra l m a y ta x a ls o w a y s In b e b a s is . to w a rd w o rk is lik e ly r e q u ir e d to d e s ig n in g s p e c ia liz e d a b o u t an d 2 o f a u to m a tic fo r e le c tr o n ic s c ie n tific 5 y e a rs in v o lv e d o f th o u sa n d s y ea rs in s ta ll in te rn a l fa c to r s o fte n c rea te la r g e fo r a th e o f p ro o f co m p o n e n ts A in s u r a n a ly z in g its d a ta -p r o c e s s in g c h a n g e s . 16 T h e in p u rch ase in v o lv e s a n d w ith in d e la y s th e m o d e rn in tr o d u c in g o f c o s tly lo n g -r a n g e n eed to b e p e r s o n n e l. r e s o lv e d . a u to m a tic p la n n in g C o n flic tin g In s ta llin g m a y d u tie s sta tu s p a r w ork ers, a n d a n d o b s ta c le . occu r h u m a n b ra k es In o n e x a m p le , o f c e r ta in b r ie f, m a y th e th e a n d in te r e s ts in e x e c u tiv e s to w o rk h ig h -s p e e d a la r g e ch a n g es in as o n e d iffu s io n a n d th e w e ll ch a n g e m a y e lu s iv e p ro v e r a p id a m a c h in e m e a n s th e ir r e s is ta n c e fa c to r cor la r g e - t h e fie ld s o f c o r p o r a te fin a n c e , d a ta -p r o c e s s in g b e as an s e n s itiv e o f th e im p o r ta n t o f th e n ew te c h n o lo g y . sev era l Some Broad Implications a u to - **See Business Week, April 23, 1955 (p. 26), New York, McGraw-Hill Publishing Co. ** These are: (1) Automatic Controls, Reinhold Publishing Co., New York; (2) Automation, Penton Publishing Co., Cleveland; (3) Control Engineering, McGraw-Hill Publishing Co., New York; and (4) Instruments and Automa tion, Instruments Publishing Co., Pittsburgh. h Investment and Sales Anticipations in 1955. (In Survey of Current Business, U. S. Department of Commerce, March 1955, p. 4.) 15 See I. H. Siegel, Technological Change and Long-Run Forecasting (In The Journal of Business of the University of Chicago, July 1953, p. 147). p rogress to o k fo r c o lle c tio n , se p a ra te s ta b le jo b -lo t c o m p le x s c a le c o m p a n y , o f in tr o d u c in g m a c h in e s. c o m p a n ie s , fa ir ly n eed ed th e e le c tr o n ic p o s ta l s e r v ic e , w h e r e s p e c ia l s tu d y in g d a ta -p r o c e s s in g m e ta lw o r k in g ers c h e m ic a l c o n tr o l, is la r g e o f s to c k h o ld e r s , e x e c u tiv e s , s u p e r v is o r s , a n d m o d in d u s tr ie s a c o n tin u e to b u t m a n u fa c tu r e r s. ord er m a r k e tin g , e q u ip m e n t, th e o f d iffu s io n tim e la r g e c o m p le x d e c is io n s in record o n r a p id a s s e m b ly e q u ip m e n t e x p a n s io n . a u to m a tic b a n k in g , n o w 19 53 la r g e r a m o u n t s o n p la n ts . a n d s c a le 19 55 a n d h ig h o p e r a tin g c o s ts e x p a n s io n d em a n d are to c o s t-c u ttin g sp en d p a te n t p r o c e s s in g , a n d c o m m itte e s c lo s e F in a lly , C o m m is s io n , in to d e v e lo p m e n t in th e h ig h fa b r ic a tin g . lo n g 3 0 0 re ta rd o f th e a u to m a tio n a s s e m b ly e x a m p le , c o m p a n y p o r a tio n C o m m e rce e q u ip m e n t p e t r o le u m -r e fin in g n ew in s u r a n c e a n d c o m p e titio n to o f fin d e q u ip m a c h in e . e x p e c ta tio n s E x c h a n g e b e search b u s in e s s D e p a rtm e n t p la n t m a y p la n g rea ter o f an d n ew c o n tin u e d p r o c e s s in g m e a n in W ith s p u r r in g m a n y S ta te s in d u s tr y l e v e l . 14 su rv e y S e c u r itie s in v e stm e n t b y th e a n d m e th o d s on c a p it a l in v e s t m e n t , is a ls o lik e ly to b e fa ir ly s t r o n g . A c c o r d in g A fo r n e a r ly a n ce th e o f b u ild in g an d d u c tio n m a n a g e th e c u sto m co m p u te r, N e w in o b s ta c le is g o o d s c o m p le x itie s , th a n m a c h in e r y . a u to a n d to p r o d u c in g m e c h a n iz e d th e s lo w e r fr o m la b o r s a v in g o f A n o th e r a s s o c ia tio n s . fo r b e a to B ec a u se th e re fo r e m a y m e c h a n iz a tio n te c h n o lo g y fie ld s o c ie tie s , to te n d p la n ts g o o d s on in an d ch a rg ed la b o r s a v in g o f e q u ip m e n t, to s ta n d a r d iz e d M o s t p ro d u ced a p u r p u b l i s h e d . 13 tra d e o f p u rch asers le a s e to F o u r to b e in g th e b ee n u s in g fa c to rs ty p e s lim ite d B ec a u se fin a n c in g fo r o f a u to m a tio n . n ew g e n e r a lly d e v e lo p m e n t gro u p h a v e areas e c o n o m ic d e v e lo p m e n t ex p ect in a n d C e r ta in e le c tr ic a l- o th e rs) 1 9 5 8 o f su ch e n g in e e r in g tra d e fu tu re , th e d e p a rtm e n ts w a y s m e n t. su rv ey 1 im p r o v e m e n ts. are d em a n d su p p rod u cers in d u s tr y d e s c r ib e d b e fo r e a n d T h e n ea r is in c r e a s in g m o d e r n iz a tio n . d ev o te d e q u ip m e n t n ew in research to o ls , to c o n tr o ls , s ig a s w e ll a s a rra n g em e n ts, jo u r n a ls , fir m s m e th o d s m a c h in e in c e n tiv e s m a tio n A fa ir ly p r o d u c in g fir m s a ls o a p p e a r s t o b e E a s ie r s ta llm e n t th e (c o v e r in g th is M a r k e tin g b y v ig o r o u s . th a t la r g e ste a d y a M c G r a w -H ill p e r c e n t m o r e in an d c o n tin u e d o f r e v o lu tio n . is A e q u ip m e n t C o m p e titio n ch ase fa c to r e q u ip m e n t. m a c h in e r y to lik e lih o o d e c o n o m y w id e a c c e le r a tin g n ew in m a tic th e n o T o c la r ify o f a u to m a tic b e tw e e n 9 th e b ro a d m a n 's r o le d u cer. C o n c e r n in g is th a t c le a r im p lic a tio n s o f t e c h n o lo g y , i t is u s e fu l t o th e p er s e r v ic e s co n su m ed d ep en d s o n th e as h is a co n su m er w e lfa r e c a p ita in p ercen t a n y o f as g ro w th d is tin g u is h an d a a m o u n t as a p ro co n su m er, o f e c o n o m y th e th e g o o d s it a n d b a s ic a lly p o p u la tio n e m - p lo y e d , a v e r a g e m a n -h o u r . p r o d u c tiv ity o m y fr o m p ercen t (b a se d 1 9 6 5 , g a in g ro w th 2 o n or a p er d u c tiv ity th e le is u r e as a sou rce U n ite d S ta te s. o f in w o u ld In o f liv in g o f th e n ew c o n s id e r e d , o n e p r o b a b le th e s h iftin g o f p r o d u c tiv e o f In th e eco n o m y . in d iv id u a l w o rk ers th is o f d is p la c e m e n t; r e s u lt o f u p -g r a d in g . n o t a d o p t a d v a n c e d c o s t-c u ttin g T h e are e x te n t te c h n o lo g ic a l o f d is p la c e m e n t ch an ges d is e n ta n g le fr o m w ill a lw a y s su p p o rt m a y fo r b e o f th e p a st b e lie v in g th a t a c c o m p a n ie d C a r r o ll p h ra se “ e x p a n s io n a n d g ro w th in g to D . o f th e T h e g ro w th th e to o f la b o r s a v in g T h e g ro w th , su ch 1 9 2 0 ,s , u rb a n a n d In so m e w ith ra y o n , g a in in If an d h ig h w a y th e p rogress T h e se fir m s t h a t d o P r o fe sso r s B a ld w in m a y 1 9 5 5 in th e la b o r b e to h ig h le v e ls in o c c a s io n e d m ea su res o f to e m m e e tin g b y fo r to g rea ter ease c o n flic tin g im p o r ta n t p r o b le m s a n d w ere S h u ltz R e v ie w . a ll th e o f d is c u s s e d in th e b y F e b ru a ry an fo r a in te r e s t m a n a g e m e n t, r e s p o n s ib le th e c o n s titu te h a v in g L a b o r, a g e n c ie s , in te re s ts is s u e s T h e y g ro u p s m a rk e t. g o v e rn m e n t c o n tr ib u te a d ju s t to L a b o r fr a m e w o r k o p p o r tu n itie s . th a t in d iv id u a ls , to tr a in w o r k e r s to lik e ly M o n th ly n ew e m p lo y m e n t. are n ew c o n tr ib u tio n lo s s e s a n d tr a n s itio n . a n d e d u c a tio n , as a r e s u lt o f v o c a tio n a l, tr a in in g , b e d iffic u lt to p lo y m e n t in s u r a n c e , h o u rs, a n d in d u s tr ia l r e la tio n s , th e r e fo r e , a re lik e ly c o n s id e r a b le u sed th e th e r is e to n ew a n d w a s s tu d ie s b o th th e rose o f c e n tu ry . an d con cern ed w ith n o lo g y u n e m w a g es th e an d p r o b le m s te c h n o lo g ic a l c h a n g e . o f t h a t fo llo w s is t h e e v e r in c r e a s in g in fo r m a tio n a b o u t th e h u m a n a s C a r r o ll D . W r ig h t , o f th e p e r v a s iv e in flu e n c e o f t e c h n o lo g y h e in itia te d m e c h a n iz a tio n T o d a y a p r o g r a m s fo r e a s in g o p p o r fo u n d aw are s e r v ic e s , a p p r e n tic e s h ip , o n .l a b o r p r o b l e m s w h e n th e c h e m ic a ls F a b r ic a n t e m p lo y m e n t p e c ts o f te c h n o lo g ic a l c h a n g e . d e c lin a c tiv tie s b y im p o r ta n c e o p p o r a n d in c r e a s in g ly O n e c o n c lu s io n e m p lo y ’s b e c rea ted p rogress o f o ld e r o p en ed e m p lo y m e n t s k ills , jo b an d a d e q u a te a tr a n s p o r ta tio n to ta l o u tp u t o ffse ttin g n ew th e r e q u ir e s in fo r m a tio n a so u n d th e a t th e b a s is tr a n s itio n c o m p r e h e n s iv e a b o u t su ch s u b je c ts h is p io n e e r in g en d fo r to th e la s t p o lic ie s o f a n d th e n ew sy ste m as o f tec h tim e ly p r o d u c tiv ity , e m p lo y m e n t , u n e m p lo y m e n t , la b o r tu r n o v e r , o c c u in p a tio n s , th a t W ith c o n s u m p tio n , p r o d u c tio n , a n d le is u r e . b r o a d e r u n d e r s ta n d in g , a u to m a tic te c h n o lo g y r a p id ly , a n d th e fo r e q u ip m e n t. a s d e s c r ib e a u to s, fo r o f m a jo r jo b o n in d u s tr ie s in a n e a r ly s ta g e S o lo m o n n eed a o f h a r d s h ip s o f d is p la c e d o f d is tr ib u tiv e , se r v ic e , a c tiv itie s as D r . p r o d u c tiv ity o f w ill b e a l ^ O s h ift o f h o m e recrea p o lic ie s e c o n o m y as le v e ls th e la b o r ” e x p a n s io n g o v e rn m e n t th e in th e u se in d u s tr ie s p r o v id in g n e w t u n itie s in t h e p a s t . o f o f in te n s ify te c h n o lo g ic a l h ig h an d research p ro g ra m s sou rce p r o b le m s lo s s e s p r o v id e s o ffs e t d is p la c e m e n t in u tilitie s , a n d a n d b y W r ig h t o f n ew in d u s tr ie s . fa c to r y , g ro w th a p r iv a te th e o th e r fa c to r s th a t c a u s e e c o n o m ic m e n t. tu n itie s a n d to record p r o v id e P u b lic p lo y m e n t u n b a la n c e . T h e e q u ip m e n t, s c h o o l c o n s tr u c tio n . fo r m a n b e n e fite d , th e ir le is u r e m a y th e F ir m s t h a t a r e a b le to a d o p t ex p a n d th e th e m a y in ch a n g e, fo r to in d u s tr ia l p u b lic a s o f a u t o m a t ic t e c h n o lo g y is g r a d u a l, th e s e in d u s tr ie s te c h n iq u e s o f p r o d u c tio n a n d a n d fr o m su ch e le c tr o n ic s , e q u ip m e n t c a te r in g r e p a ir w o rk w eek p ro w ork ers, o f b u ild in g a n d sh o rter e x p a n s io n p r o d u c in g p ro d u c ts d e v e lo p m e n t; e q u ip m e n t m a y g a in a s ig n ific a n t c o m a d v a n ta g e to ta l n ew a c tiv itie s E m p lo y e e s in b e c o m e u n e m p lo y e d . p e titiv e (tr a v e l, h o m e tio n ); o f s u ffe r o th e rs n eed s a in str u m e n ts, in d u s tr ie s in so m e fr o m in d u s tr ia l in d u s tr ie s T h is v a r io u s p rocess in e v ita b ly r e s u lt to o f B r o a d ly assess. resou rces c a p ita l a m o n g te c h n o lo g y ; ch a n g e t e c h n o lo g y m a n a g e m e n t, a n d o th e r fo r co m e a ir c r a ft, an d w o rk w eek s e ffe c t w ill b e en erg y , n ew o u tp u t sta n d a rd s a s a p r o d u c e r a r e m o r e d iffic u lt t o a to m ic m a y sou rces 3 to in c r e a s e d te c h n o lo g ic a l h ig h e r im p lic a tio n s sh o rter sh o rt, n ew b illio n m o re . a llo w a n d o f econ ra te , $ 5 4 $ 2 8 7 a ls o ra te n o n fa r m n a tio n a l b a s is , in tr o d u c e d , o u tp u t p er lo n g -t e r m th ro u g h r e s u lt th e a n n u a l a d d itio n a l p r ic e s ) c a p ita v a c a tio n s . th e th e p r iv a te a n m a te r ia l w e a lth in in th e m e a n co n sta n t lo n g e r T h e o f p e rc e n t, o n in c r e a s e b e in c r e a se w o u ld in a n d h o u rs w o rk ed , a n d A n r e d u c tio n g rea ter p r o d u c tiv ity b e c o m e th e b a s is fo r in e n r ic h in g life in a fr e e s o c ie ty . u n i t m a n - h o u r r e q u i r e m e n t s . 16 In th e fu tu re , p la c e m e n t, a s so m e a c c o m m o d a tio n a u to m a tic te c h n o lo g y is to jo b d is “ 8. Fabricant, Employment in Manufacturing, 1899-1939, New York, National Bureau of Economic Research, 1942. g r a d u a lly 10 Social Implications of Technological Progress m a n -h o u r s p er te c h n o lo g y is th o se in p la c e E d it o r ’ s N o t e .— e x c e r p t e d S t e w a r t a r d s , D a n d b e f o r e a e p u t h e a r t i c l e p a p e r t y A , F i f t e e n t h A d e n o t e o f S A n o n e a s i e r u n u s e d i n d i c a t e d . t . n s s o c i a t i o n L e g i s l a t i o n i n t e r e s t U w h i c h f o l l o w p r e s e n t e d s s i s t a n S t a t i s t i c s C a n a d i a n L a b o r T h e f r o m D u e p a r t m a l f o r A d m 8 , e n t o f t h e th e o ry a s D an d . L a b o r o f t h e o f . 1 9 5 6 t e x t I n m h a v e n o t k n o w o f th e fo r b e e n la b o r , hat are T h e se p r o b le m s p rogress m e n t the fo r la b o r la b o r d iffe r e n t m a y b e w h ic h an d o ffic ia ls , a p p ro a ch es o u r s e lv e s , im p l ic a t io n s to la b o r w e fa m ilia r w ith in a m o st u se fu l a rrested to A s a n d P erh a p s w h a t I on m y to u ch m a n y m a y w o r k in g m o st g o v e rn r e th in k p r o b le m s if te c h n o lo g ic a l p o lic y ? n eed g e n e r a tio n , e n v ir o n m e n t. h a v e o f in I fin d q u ite can c y c le . b ility — th e areas. h ig h e r im p lic a tio n s th e m o re stru c tu ra l m a y in d u s tr ia liz e d r is e a n d b e m u st d e ea sed th e In ex p ect th a n c o u n tr ie s . in seen im m o e m p lo y m e n t. S ta te s, w e o f u n e m p lo y m e n t a p p r e c ia b le m a l b e in d u s tr ie s fu ll an d s e r io u s g e o g r a p h ic s ic k o f U n ite d ra te a n d n o d em a n d tr a in in g w h ic h o f m a l s h o r t-r u n a n d A ll o f th e se p r o b le m s c a n a v era g e fo r e se e o f b e o f m a jo r p r o b le m s c o n d itio n s a n d d y n a m ic a tte n tio n . w ith b u t ir r e g u la r itie s w ill th e ec o n o m y , p r o b le m s gen eral C a n a d a sa y in p ressed b y a c le a r ly th e a b s o r p tio n p ro d u ce th e s u p p ly in to ta k e e c o n o m ic o f can p r o b le m s m e rg e c o n n e c te d in th e m a y p la c e . to T h e re b etw ee n n ew s a tis fa c to r y , ta k e s ch a n g e it T h e to o c o n tr ib u te a c c e n tu a tin g a d ju s tm e n ts W p rocess w h ic h b u s in e s s ra te. n o n e th e e s s e n tia ls fr o m m e c h a n is m s is te c h n o lo g ic a l m o b ility . . th e th e m a la d ju s tm e n ts t o a n tic ip a te I a n y in ex cep t a c c e le r a te d th a t R a p id p r o d u c tio n in d e s c r ib in g a d ju s tm e n ts t h e a r k s p a st, an o f d iffe r e n t r e e m p lo y m e n t w e , i n i s t r a t o r s s u s p e n s i o n o f w S t a n d C o n f e r e n c e o f r e a d i n g , s C h a r l e s S e c r e t a r y O c t o b e r p o r t i o n s b y th e a t u n it n o a v era g e in a le s s B u t I le v e l o f u n e m p lo y m e n t d u r in g p e r io d s o f fu ll e m p lo y m e n t , Implications for Full Employment i.e ., in fr ic tio n a l u n e m p lo y m e n t In C a n a d a a n d e m p lo y m e n t b een fa c ts p o lic y . th e m o re N o w in o f T h e fu ll w e th a n h a v e o v e r c o m in g th e c o n n e c te d b eg u n tr ia liz a tio n . a c c e le r a te d to to a g a in s e r io u s T h e to fu n c tio n in g b y h a d p r o b le m o th e r la r g e th e set o f m ea su re b u s in e s s th e o f sw e e te r D o e s fr u its s ta b ility o f a fa c to r s. d is p la c e m e n t n o t or T h e c h a lle n g e to fo r in s titu tio n s , s e r v ic e , v o c a tio n a l tr a in in g n o to in d u s an th e reason u n e m p lo y m e n t s ta b ility a n d in n o v a tio n ou r le a d in c r e a se o f fu ll te c h n o lo g ic a l a r is in g p rogress. in 11 o u t so in th e w h o la b o r is are m a rk e t e m p lo y m e n t in s u r a n c e as o u g h t h o w ev er, o ffic ia ls g u id a n c e , fa r th e m a g e n c ie s , e tc . gen eral T h e re is e c o n o m ic th e b u s in e s s c y c le a re c o n c e r n e d , t h a t to fis c a l, m o re r e d u c tio n a n d th in k , c a p a c itie s m o n e ta ry , la b o r p a r tic u la r ly w e an d le v e l w ith g rea ter b u t o u r w ith H e re , im p r o v e m e n t m o st b e d eal g o v e rn m e n t in o f to c o m m e n s u r a te ly . r e s p o n s ib le u n e m p lo y m e n t? o f im p r o v e a n d a c h ie v e d , a n d is n ew . to c a p a c itie s c y c le , a u to m a tio n te c h n o lo g ic a l b y o f su ccess in s ta b ility th e in s titu tio n a l e c o n o m y , w ith p r o b le m s D e ce m b e r 1956 o f (th e c o n s is te n t P r o b le m s o f a d ju s t m e n t m a y la b o r c o n d itio n e d is e m p lo y m e n t). h a v e fo r e c o n o m ic im p a ir th e u n e m p lo y m e n t a n y a Q u e s tio n : th rea ten is p o stw a r p o lic y im p o r ta n c e o f w ork ers o b ta in ra te S ta te s , h ig h e m p lo y m e n t o v e r r id in g w e lfa r e p erh ap s s e c u r ity U n ite d fu ll e m p lo y m e n t th a t h a v e th e a n d u n e m p lo y m e n t w h ic h s ta b iliz e a n d r a p id ly o f th e o th e r th a n in c r e a s in g ly e c o n o m y p o lic ie s th e p r o b le m s r a p id th ro u g h w ill n o t w e fa c e t e c h n o lo g ic a l Implications for Shorter Hours m in im u m it T h a t tio n sh o rter h o u rs a n d th e e n v is a g e k in d r e fle c ts , u n e m p lo y m e n t J u st is m as th a t th e th e n o r e la tiv e g r e s s iv e w ith te c h n o lo g ic a l m a n y p rogress in s ta n c e s , a n o t w o rk it te c h n o lo g y is h e r a ld s a a in th is c h o ic e sh o rte r u p o n o f le is u r e a n d a n d e a s ie r t o o f s tr a in p in g e h e a lth , on w o rk s o c ia l life , sta n d a rd s I d o o th e r to n o te age w o rk ed h ou rs o f th a t in an d o f in m a y n o th e in d u s tr ia l fu tu re . in fo r or fo r th e H o u rs G in s b u r g W o rk e rs b y P r o b a b ly p r o b le m in h o ld in g is n o t u n c o m m o n w ith in c lin e d g e n e r a lly to th e o v e r L a b o r c e n te r th e tim e h a v e in fo r e se e s o c ia l in s u r a n c e la tte r m o st ta k e or th e th e or o f th e th a t o f th e te c h n o lo g ic a l fo r m th a t th a t th e h o u rs in d iv id u a l’s th e r e la tiv e n o t to I a m w o rk on p o lic y ers o u t o f o f c h o ic e th e m is ta k e n , in th e a p a rt o f th e re w o rk fu tu re la b o r o f sp a n . fro m o u t to to n o t s ig n s rest u s, w o rk w ork ers. g r o w in g w ill th e in p u t life c h o ic e o ld e r are b ia s e s to w a r d g lu tte d to fr e e d o m h ou rs o f fre e d o m in c r e a s in g p e r m it th e is n o t b u t w o rk r e a d ju s tm e n ts a n d fu tu re w o rk y ea r, tru st c e s s io n -o r ie n te d 1 le n g t h w ill s o c ia l a t th e fa c ilita te s e r io u s in y e a rs I in w ill d is p la c e m e n t th e m a y a g a in u p o n U n th a t r e - c le a r in g o ld e r w o r k m a rk e t b u t on fr e e d o m o r r e tir e R a lp h th e Occupational Skills and Satisfactions th a t 6 -d a y , T h e see m in to s a id , I p o lic y cu rren t in te r e s t in th e m o re s p e c ta c u la r A t p re se n t, a sp e c ts o f a u to m a tio n w ork ers F a ir te c h n o lo g ic a l p r o g r e s s h o ld s or M ill re p o rte d 3 6 -h o u r w e e k in A k r o n r u b b e r p la n t s . S ta te s w a n t w h ic h le s s W . w o rk th e H e re in recen t a n d o f c o n s id e r a tio n s o u g h t to fle x ib ility u n e m p lo y m e n t. o f W o r k o v e r tim e th e C e r t a in ly it is t r u e , h o w e v e r , w o rk y ea r, o c c a s io n e d a v e r P a p er a t o th e r h a n d , th e c a ta p u lte d a lr e a d y le g is la tiv e th e e m G e o rg e a n d S h o rte r in h a v e im n o n a g r ic u ltu r a l S ta te s. L . in or w ee k an d is fu ll r e d u c tio n p resen ted R u b b e r I t a n d c h o ic e t h a t th e te n d e n c y , fo r s o m e tim e a t le a s t, to sh o rte r m a te r ia l s u b s ta n tia lly v ie p a rt h o u rs, a rd u w o rk th e w o rk s u p p o r t o f w a g e b a r g a in in g . fa ir la b o r s ta n d a r d s . fu ll p a r tic ip a tio n S u lp h ite o n w h a t I s h a r e -t h e -w o r k th e U n ite d b e F r o m to w o rk w eek , occu rred W o o d r o w th e A c t O n th e w h en w h ere o f tim e w o rk w eek p a p er w ork ers p a y . in as r is e . U n ite d C o n fe r e n c e B e rg m a n n d u a l jo b h a s a p e n a lty S ta n d a rd s I t b eco m e s p o in t sa m e w ith P u lp , in fa c to r y p r e m iu m life , ch oose th e th e s a id A F L -C I O a r e c e n t y e a r s , little e m p lo y m e n t o f fa v o r o f le is u r e , d e tr im e n ts th e th a t in W o rk e rs a t w h a t w ill p lo y m e n t B ro o k s b e lo w fa m ily k n o w la b o r le g is la tio n . tim e liv in g a s h o u r s in p u t a n d o f c o n s u m p tio n n o t in P ro o f o f v o lu n ta r y p r e s s in g , w ill m in im iz e t h e r o le o f h o r n s r e g u la tio n a d d i in c o m e . le v e ls m a k e in o th e r w h ile w ork ers te r e s tin g fa ll a n d to h o u rs fo r th a t d a y ju d g m e n t p r o d u c tiv ity m o r e u n c e r ta in o u sn ess o p p o r tu n ity w o r k in g h o u r s , a s t h e n e e d fo r in c o m e b e c o m e s le s s u to p ia n h o u rs th e ir a s o c ia l p o lic y s t a n d p o in t , sh o rte r o f p o litic a l p r e s s u r e in p r e fe r w o rth F r o m th a t w e sh ared . n ew w a g es. o b v io u s im p r o v e d w o rk . p h y s ic a l in fe a r r e fle c ts b u t t h e o u t c o m e is h a r d ly p r e d ic t a b le . m o re a n d a u to m a if h o w ev er, d ep en d s g a in s in e v ita b le sp read w ork ers in c o m e m a k e in w ill n ew an d W h e th e r tio n a l o f c o m m o n ly , a ll p la y are is p la c e a an d a to m ic e n e rg y d e v e lo p h ig h e r m e n ts h a s fo c u s e d a tte n tio n o n p r o s p e c tiv e c h a n g e s v a lu e o n a d d itio n a l in c o m e th a n o n m o re le is u r e , in b u t th is m a y n o t a lw a y s b e th e th e s k ill c o n t e n t o f jo b s E v e ry o n e S o m e fu r th e r r e d u c tio n in h ou rs o f w o rk is agreed a p p e a r in e v ita b le . T h is m a y ta k e v a r io u s e c o n o m ic a l u se o f c o s tly d u c t iv e fa c ilitie s w ill le a d to m u c h fo r t h e w o r k s c h e d u le . th e w o rk y ea r w ill im p lic a tio n s fo r ch a n g e tra d itio n a l h a s o ccu p a t h e s u g g e s t io n is t h a t t h is is in c r e a s in g ly th e th e fu tu re . U n ite d S ta te s, a t le a s t, I th in k g o v e rn I t is m u c h m o r e m e n t th a t te c h n o lo g y . e x p e r im e n ta tio n In c e r ta in n ew p ro tru e a n d v a r ie t y in th e te c h n o lo g ic a l fo r m s. tio n s , a n d r e q u ir e m e n ts o f th a t w o u ld r e v o lu tio n a r y T h e in case. b e red u ced la b o r o ffic ia ls h a v e p a id a ll to o little a tte n th a n tio n to g o v e rn m e n t r e s p o n s ib ility in s h a p in g th e t h a t t h e w o r k w e e k w ill b e s u b s t a n t ia lly s h o r te n e d . o c c u p a tio n a l A s id e fr o m q u e s tio n s o f in d u s tr ia l sa fe ty g o v e r n m e n t la b o r o ffic ia l m a y b e con cern ed w ith th e im p a c t o f a d m in is tr a tio n o f o v e r tim e la b o r fo rc e . F o r w ork ers, th ro u g h s p e c ia liz e d e x p e r ie n c e s k ills o n th e h a v e jo b . b ee n ac T h e re h a s c h a n g in g 1 For excerpts from Mr. Brooks* paper, see Monthly Labor Review, No vember 1056 (p. 1271); and from the paper by Messrs. Ginsburg and Bergmann (p. 1268). h o u r s in c o n n e c tio n w ith s t a t u t o r y h o u r s s ta n d a r d s a n d th e m o st q u ir e d d ir e c tly o f a n d m o st h e a lth , th e c a p a b ilitie s p r o v is io n s in 12 b een n o t o ffic ia l s u p p o r t p la y e d th e c o u n tr ie s . a tte n tio n s c h o o ls tio n fit tr a in in g h ig h e r In r e c e n tly , m e c h a n is m s in to m e e t h a s p ro g ra m to to to g e th e r p rocess. o n S e c re ta ry a o f S k ills p u b lic an d ran g e in J a m e s W o r k o u tlo o k s tu d ie s o f th e g u id a n c e an d to th e in fo r p u b lic an d tr a in in g m u st e m p lo y e r th e T r a in in g is th e b e d e m a n d . r e a liz e d n u m b e rs lin k if I m o re o f w h o le c a p a b ilitie s , g e n e r a liz e , d a y s .” ran g e th e an d b e lie v e , o r le s s th a n I s u s p e c t th is w ill d e p e n d in d iv id u a l’s sta tu s u p o n in h is jo b c o n te m p o ra ry r e la tio n s , p o lic y , s itu a tio n , p rogress p erson n el a n d in a d m in is s o c ia l le g is la tio n . s c h o o ls , w ill B u t b a la n c e , p r o v id e d it ap p ears th a t a u to m a tic tech th e p o rte n d s a le s s e n in g o f o c c u p a tio n a l th ro u g h h azard s* a n d a c o n d i t i o n s .2 T h is gen eral im p r o v e m e n t in w o r k in g e ffo r ts. b etw ee n la b o r T h e . t e c h n o lo g ic a l o n ly is w id e fo r s e r v ic e , s u p p ly th e a d a p te d la b o r to p o te n tia l s u p p ly la b o r in is n o t s o c e r ta in , a t th e p resen t an d m o m e n t la b o r can a Protective Labor Legislation v o c a tio n a l c h o ic e . b e b e o p en in te llig e n c e , e c o n o m ic n o lo g y m e a n s o p e r a tio n s D e p a r t m e n t ’s p u b lic o f to s a tis fa c tio n s w ill b e d ep en d s tr a tio n , a u to m a tic a p p ea r o n e la b o r -m a n a g e m e n t a tte n tio n e m p lo y m e n t p rocess N o th e w h ic h O n c o n tr ib u te th u s th e “ g o o d o ld u p o n P . F o rce h a n d le o p p o r tu n itie s h u m a n w h e th e r jo b th e s k ills . a p p r a is e o c c u p a tio n a l n e e d s a c tiv itie s jo b in o f in te r e s ts . an d to d a y s ’ tr a in in g . w o u ld a tte n L a b o r T h e fe w O u r e m p lo y e r tr a in in g . a o c c u p a tio n a l sh o rta g e s th e q u a lifie d o n ly T h e re little te c h n ic a l o f w ith p u b lic a n d s c ie n tific b eco m e h a s th e r e q u ir e m e n ts d ir e c t w ith g iv e n w h ic h o f e ffe c tu a te c o u n s e lin g h a v e it E u ro p e a n p r o s p e c tiv e in itia te d o c c u p a tio n a l b u t so m e b y c e n te re d c o n s c io u s e ffo r ts t o an d in w e tr a in in g s itu a tio n , M itc h e ll to th e la r g e ly c a te g o r ie s th is as th e is to a p p r e n tic e s h ip , r o le U n til to n o w o f sa m e a t le a s t, w ith resp ect to e x te n d e d a p p li ca n k in d c a tio n o f a to m ic en erg y to B u t in g e n e r a l, o n e w o u ld g e n e r a l in d u s tr ia l u se s. a n d r e q u ir e m e n ts . e x p e c t, w ith p r o g r e s s iv e In im p r o v e m e n ts in r e a l in c o m e s a n d liv in g s ta n d a r d s , d iv id u a l p o te n tia ls an d s a tis fa c tio n s , u n d er a n y th a t g iv e n set o f te c h n o lo g ic a l fa c ts, are lik e ly to w o r k in g in g ly . m a x im iz e d u n d er su ch c ir c u m s ta n c e s . F o r I lo g ic a l u n e m p lo y m e n t tr a in e d ca n b e m in im iz e d b y c a p a b le o f m e e tin g r e q u ir e m e n ts o f a c h a n g in g to to C u r io s ity a b o u t th e fu tu re O p p r e s s iv e d is a p p e a r , b e su re, n e t e ffe c t o f le a d s u s to o f p en u ry te c h n o lo g ic a l u p o n th e o c c u p a tio n a l th e re is n o stru c tu re con sen su s o f th e o n to d a te , d u r in g su g g ests A u to m a tio n v e lo p m e n ts an d th e w h o le an r e la te d s u b s titu te b u t as in p e r io d sta n d a rd s p rocesses fo r en h a n cem e n t o f t e c h n o lo g ic a l d e m e c h a n ic a l u n s k ille d an d m a y o n to la b o r . e m p h a s iz e In h ig h e r so m e s k ills fo r s itu a tio n s , th e T h e n ew n eed fo r s p o n s ib ility is th a t tr a in in g an p r o g r a m m in g th e re is n o in c r e a s in g ly an d a an d Y e t are r e q u ir e d . Y e t th a t th e th a t as c e r ta in a m o u n t o p e r a tio n s o f s k ill lin e w ork ers d e c lin e s , S o m e o f g o v e rn m e n t r is e as s e r v ic e s , w e h a v e th e th a t th e m . p r o te c tiv e in th e la b o r fu tu re le g is la t io n th a n s o c ia l sta n d a rd s w ill in r is e th e w ith g o , p e r s p e c tiv e s . a n d th e re T h e re w ill is a lw a y s s till b e a b a c k w h ere th e le a s t a d v a n ta g e d o u ts id e p r o te c tio n fr o m e m p lo y e r w ork ers n eed ab u ses. fa c to r , p r o m is e s fr o m to d an gerou s, r e lie v e d ir ty , m o re h e a v y , a n d a n d m o re b a ck ta k e s jo b s . In d u s tr ia l h y g ie n is ts fo r e se e th e s tu d ie s b ec o m e r e q u ir e d an d m o d e l e n tr e p r e n e u r ia l w ash es o f w ork ers o f a la r g e p e rc e n ta g e o f tr a u m a tic fu lly fr o m lift in g , h a n d lin g , a n d u n lo a d in g o f p ro sto ck , d u c tio n o f re in ju r ie s th e fie ld fin a n c e c u ltu r a l to e lim in a tio n a u to m a tiz e d so u rce p r a c tic e to o u r in w a y b r e a k in g in d ic a te a in te llig e n c e a p p a r e n tly o p e r a tio n s . la b o r te c h im p o r ta n t a u to m a tio n o f th e s k ille d th e G o o d h ig h e r w ork ers o v er so m e e m p lo y e r . c o n tr o ls . q u e s tio n s p e c ia liz e d th e s m a lle r r o le A u to m a tio n b ro a d th e o th e r lo n g an d o f r e la x e d b u s in e s s , o f c o u r s e ; a n d a n d su g g ests h a v e ch an ges seem s h a s o f p a st. n o lo g y s u p e r v is io n score. T h is s k ills . th e p r o d u c tiv ity are e c o n o m ic m e a n s in d u s tr ia liz a tio n , d e h a v e fu tu re . th is ou r E x p e r ie n c e n a tu ra l c o n d itio n s w ill p r id e ; A p p a r e n tly corresp on d th e w o n d er ch an ges e s ta b lis h m e n ts b e la b o r w ith as c o n d itio n s a re g o o d th e r is e b ee n te c h n o lo g y . p ressu re w h a t h a s th e S ta te jo b w o u ld th is a te n d e d la b o r fo r c e th in k T e c h n o v e lo p m e n t : fle x ib ly c o n d itio n s b e a n d co n ta ct w ith fu m e s an d d an gerou s can m a te r ia ls . I llu s t r a t iv e is t h e 8 5 -p e r c e n t r e d u c t io n 2 S,ee C. Richard Walmer, Workers' Health in an Era of Automation, p. 43. ^ Ibid., p. 45. in h e r n ia in s ta lle d 13 cases in a w h ere F o rd a u to m a tic p la n t, c ite d b y m a c h in e r y W a lm e r .3 w a s T h e industrial hygienists are n ot altogether com placent. W alm er emphasizes the “ danger o f ca tastrophic exposures due to ruptures in the lines or o f acute exposures where m aintenance w ork is in v olv ed .” 4 I find also considerable concern for em otional im pacts on the worker, either because he m a y fear displacem ent or is su bject to the need to adapt to new circumstances, or because he is worried over the responsibility w hich m a y be his for the operation of costly and com plicated capital equipment. B u t the experts leave m e w ith som e apprehen sions when th ey detail the risks o f radiation and the use o f new, dangerous materials connected with the industrial applications o f atom ic energy. H ere governm ent labor officials are confronted w ith new problem s, or variations o f old problem s, in safety standards and w orkm en’s com pensation. W e d o n ot k n ow the scope or the im m ediacy o f large-scale industrial atom ic developm ents. B u t in the U nited States, we k n ow the traditional w orkm en’s com pensation systems are ill equipped to deal with emerging risks and problem s o f ad judication and com pensation. T h e second-injury problem is m ade m ore com plicated; the question o f causal relationship m ore baffling; and time lim itations on filing m ore im practicable. S ocalled schedule type o f coverage lim ited to specific occupational diseases is patently inadequate. Adequate com pensation m a y be m ore and m ore costly and never adequate. For, according to m edical authorities, radiation diseases m a y have periods o f latency extending up to 30, 40, 50 years. There m a y be types o f radiation illnesses n o t y e t known. So little is know n about radiation injury (and exposure from m an y sources if cum ulative) that determ ination o f causal connection is even m ore difficult than in ordinary circumstances. In the future, labor departm ents will need staff to aid in cod e drafting in the atom ic energy field, lU in training o f radiological safety personnel, and in preparation o f technical materials for educational and safety purposes. I t is suggested that it m a y b e necessary to organize, in cooperation with governm ental health agencies, a system o f indi vidual radiation exposure records covering indus trial, m edical, and dental exposure. W ork m en ’s com pensation will need to be extended to m eet the new risks and the new problem s o f adm inistration. Particularized standards will need to be developed w ith respect to hours o f work, overtim e, perhaps rotating shifts or sabbaticals, and suitability o f em ploym ent b y age, for radiation dangers are aggravated b y con tinuity and length o f exposure and are m ore serious am ong the you n g than the old. Thus, I am sure protective labor legislation is n ot a passing need in the early stages o f industrial ization. B u t it does need reappraisal and adapta tion to the needs o f the times if it is to m aintain its relevancy to the welfare o f workers in a rap id ly changing society. Our problem s, how ever, are n o t all in the future. In the U nited States and in Canada, there are areas w hich have been little affected b y m od em industrialization. Our w ork ing conditions and living conditions still are gen erally low , com pared w ith the prom ise o f m odern technology. W e are at the threshold o f a period o f great econom ic grow th and change, as indicated b y the burst o f capital expenditures for expansion and m odernization o f equipm ent. I think it im portant to bear in m ind that our problem s m a y be som ewhat different than in the past, that old approaches m a y n ot be the m ost appropriate ones. G overnm ent labor officials have a personal responsibility to see that lab or legislation is realistic and its adm inistration effi cient for the needs o f w orkers in an industrialized society. *Ib id . Impact of Technological Progress on Labor and Social Policy E d it o r ' s N o t e .— ex c erp ted The fr o m m a te r ia l w h ic h fo llo w s A u to m a tio n and O th er w as T ech n o lo g ic a l D e v e lo p m e n ts — L a b o r a n d S o c ia l I m p lic a tio n s, th e J fith fe r e n c e , R eport P a rt I O ffic e , 1 9 5 7 ) . su rvey (G en eva , D ir e c to r -G e n e r a l Labor In te r n a tio n a l o f th e p r o b l e m s en ergy, and n o lo g y a p p ea r to r a i s e to th e I L O , ” d isc u ssio n th e In te r n a tio n a l to C on Labor T h a t r e p o r t, “ a b r ie f p r e lim in a r y o f som e tio n , a to m ic con cern of se ssio n , in w h ic h th e a r e a s w a s d esig n e d at th e 1957 to d e v e lo p in g th e I L O ’s in th is a r e a . a u to m a o th er c h a n g e s C o n fe r e n c e p o lic ie s in tec h o f p rim a ry to s t im u la t e w ith and a v ie w a c tiv itie s h e r e i s n o d o u b t that we have entered a new techn ological era. A u tom ation and atom ic energy, unfoldin g sim ultaneously, are already causing drastic changes in the w orld o f industry and labor. D esp ite substantial differences o f opinion, no one w ou ld d eny th at th ey p rovide a pow erful lever for econ om ic grow th. T h e y m ake possible the m ore rapid developm ent required to keep pace with population grow th and to raise living standards. T The Pace of Progress T h e k ey to the labor and social im pact o f autom ation and other technological innovations is the rate o f speed at w hich th ey are introduced. A s m a n y have emphasized, if the changes o f the last 50 years had been com pressed into the space o f 5 years, there w ould have been econ om ic and social chaos. I f the changes resulting from auto m ation, the use o f atom ic energy, and other recent innovations were to take place within the same lim ited period o f 5 years, there w ou ld be grounds for grave concern. There have been lon g discussions o f the factors lim iting the introduction and spread o f autom a tion and analogous developm ents. There has been less discussion o f the forces accelerating the rate o f [its] introduction. One o f these is the social dem and fo r higher livin g standards. A n other is the snow balling effect o f technical change: one thing leads to another, in the same place and Ju ly 1957 in other places. R elated is the specific force o f research and developm ent work, the “ fully au to m a tic" or “ fully electron ic" or “ fully a to m ic " solution becom in g the scientific ideal. A further and m ore specialized fa ctor is intensified industrial research. A less general b u t highly im portant fa ctor is the dwindling labor force o f certain countries in relation to the trend o f population grow th or the fact o f labor shortage in relation to m anpow er requirements for planned econ om ic grow th. In addition, the v ery size and com plexity o f adm inis trative, scientific and technical, and industrial problem s in the m odern w orld and the rh yth m o f operations are calling forth new m ethods o f w ork and produ ction and new sources o f energy. Finally, autom ation and developm ents grouped under this head present certain clear-cut ad vantages to industry. Som e are financial. O f these, the m ost im portant is the reduction o f direct labor costs. Other advantages are tech nical. O f these, the m ost im portant is p rob ab ly the fact that autom ation makes it possible to produce better quality good s and to w ork with constant precision and within narrower specifica tions. M o s t people tend to believe that the new technologies will spread from one field to another over a fairly long period; that the weight o f evidence is in the direction o f gradual evolution from cou n try to cou n try as well as from one field o f industry and com m erce to another; and that this is the m ost reasonable basis on w hich to plan socially for the absorption o f change. F ew have challenged these assumptions. N o r w ould I d o so. Y e t in the interests o f caution, it m ight be noted that on ly a few years ago autom a tion and the developm ent o f a tom ic energy were b o th com m on ly regarded as practical problem s for the next decade, n o t for this one. Things have happened far faster than m ost qualified observers in b oth fields expected. T h e accelerating ten dency tow ard increasingly autom atic m ethods o f produ ction and tow ard the use o f new sources o f pow er is certain to have a p rofou nd influence on the pattern and s t r u c t u r e d industry and on the location o f industrial a ctivity. T ech n ological advance has generally tended tow ard concentrating prod u ction in large, highly capitalized plants w ith com plex technical processes. A g ood m a n y trade unions, as well as small em ployers, fear that m on op oly will be a con com itan t o f autom ation and th at m an y small businesses will drop ou t, causing m u ch labor displacem ent. Leaders o f the A m erican Federa tion o f L a b or and the Congress o f Industrial Organizations have raised this problem and called fo r stu dy o f its im plications. T h e U nited K in g d o m trade unions have urged planning and action so th at small concerns m a y be able to obtain a utom atic equipm ent. On the other hand, a con trary view as to the im p a ct o f autom ation on the size o f firm is taken b y other observers. F o r instance, the president o f the Carnegie In stitution o f W ashington foresees new opportunities for small business. In his view , “ if large m anufacturing com panies turn to autom ation in extrem e form , th ey . . . increase their ow n rigidity and render it m ore possible for the small industrial unit to prosper b y reason o f its inherent flexibility.” 1 On balance, how ever, autom ation seems likely to lead to a greater concentration o f prod u ction in large or m iddle-size units. T h e num ber o f workers em ployed at these plants m ight be sm aller; the prod u ction m ight be larger. W ith a tom ic energy and autom ation together, the fa ctory is no longer tied to a traditional pow er o r labor supply. Industrial m oves m a y be en couraged b y the fa ct that it tends to be m ore econ om ical and, indeed, in m an y cases necessary, to install autom ation and atom ic generation in specially designed new plants than in old ones. These factors suggest the possibility and probabil ity o f industrial decentralization and plant shifts and the em ergence o f m an y social and com m u nity problem s arising ou t o f plant abandonm ent. pational shifts required to adju st to the changes can b e m ade. Past experience shows no reason to believe that technological innovations lead to a decrease in the global volu m e o f em ploym ent. On the con trary, it suggests that such innovations, while they m a y cause declines in som e areas o f em ploym ent, lead in the lon g run to an expansion o f em ploy m ent b y creating increases in oth er areas. In all [industrialized countries] th e m ost significant characteristic o f the postw ar era has been the phenom enal grow th o f quite new industries and service trades and occupations, opening up new em ploym ent opportunities in m a n y fields. So far, the fact o f the m atter is this: Postw ar technological advances have n o t been responsible for mass displacem ent o f workers in an y cou n try or industry. F o r one thing, autom ation and analogous innovations are m aking greatest head w a y in industries w ith expanding ou tp u t and m arkets and in industries where hum an pow er alone cou ld never perform the operations needed to produce the goods w e w ant. F o r another, norm al labor turnover and m ob ility are coping w ith a go o d part o f the situation. Finally, in the industrially advanced countries, technological im provem ents have been introduced against a general postw ar background o f econ om ic recovery, grow th, and expansion and against less severe business fluctuations than in the prewar period. M o st feel that it is im possible to predict the [im pact o f autom ation] w ith present-day tools b u t that better m ethods o f analysis and forecast ing m ust be foun d. A ll agree that, w hatever the scale o f the im pact and related prod u ction changes, the em ploym ent situation needs continuous w atch ing and careful analysis and that it is in this area o f report and inquiry that governm ent services, at all levels, can m ake a particularly im portan t and im m ediately practical contribution. O n the whole, the trend o f opinion am ong em ployers and trade unions is optim istic b u t cautious. N ever theless, and m ore particularly in trade union cir cles, there is an evident fear that things will n ot go on forever as th ey are; that a saturation point m a y be reached; that, even w ith decreased hours The Impact on Employment W h at is the im pact o f technological im prove m ents on em ploym ent? T h e answer depends to a large extent on h ow fast and h ow generally change takes place. E ven m ore, perhaps, it depends on the b u o y a n cy o f the econ om y. So long as im provem ents are introduced against a background o f high levels o f econ om ic a ctivity and a con tinuing rate o f econ om ic expansion, the m ain tenance o f the general level o f em ploym ent is n ot lik ely to be a serious problem p rovided the occu 1 E d it o r ' s N o te .— C ite d in A u to m a tio n an d T e ch n o lo g ica l C h an ge, H ear ings before th e S u b co m m itte e o n E c o n o m ic Stabilization o f th e [C ongres sional] J o in t C o m m itte e o n th e E c o n o m ic B e p o r t, 84th C o n g ., 1st sess., W a sh in g to n , 1055 (p . 615). 16 b y recent technological advances. F o r wom en, the general ten dency has been tow ard greater num erical participation in the labor force and wider em ploym ent opportunities. It m a y be considered probable that autom ation and other changes will reinforce this ten dency as well. B o th handicapped and older workers m a y find m ore opportunities for useful em ploym ent in the autom ated factories o f the future, as m ore o f the physical functions o f p rodu ction are transferred from hum an beings to machines. Som e countries anticipate a slow ly grow ing or static labor force in future decades and, therefore, lo o k to the higher m an-hour p rod u ctivity o f autom ation to com pensate for relative labor shortage in the active age groups. T h e y believe that this is a m ost im portant factor in the overall em ploym ent outlook, as well as one affecting the future com position o f the labor force. Tech n ological progress holds ou t great savings in la b o r: let us n ot b e afraid to adm it this. These savings m a y b e taken in the form o f (1) higher output, (2) shorter hours, (3) u n em ploym en t; or a com bination o f the three. T h e problem , to m y m ind, is to arrive at a satisfactory com bin ation o f the first tw o and to avoid the third. F o r some countries, the m ain danger o f un em ploy m ent m a y arise n ot from to o rapid b u t from to o slow progress in autom ation and other tech nological developm ents. A s a result, these cou n tries m a y lose m arkets to m ore efficient c o m petitors. Th is is a real danger in countries where restrictive business practices are adopted b y em ployers and restrictive labor practices are insisted upon b y trade unions. Pressure for high wages b y trade unions does n ot clog tech nological progress, but, on the contrary, m a y prom ote it b y d rivin g m anagem ent to install m ore efficient m ethods and m achines and b y expanding the dem and for industrial goods and services. B u t rigid dem arcation lines betw een changing skills, “ featherbedding,” unrealistic views on apprenticeship ratios or length— these are am ong the factors which m a y clog technological progress. A gain, unwillingness to take risks, inefficient w ork organization, the absence o f m anagem ent developm ent policies and training facilities— these are also factors which b lock advance. T h e dividing line betw een measures which are to be regarded as unreasonable reStric- o f w ork and increased leisure and new and grow ing dem ands, em ploym ent will soon cease to expan d; that old jo b s will be displaced faster than n ew jo b s will be created; and that unem ploym ent on a w ide scale will be the inevitable result. W h a t is the basis fo r these apprehensions? In the U nited States, the fear is that em ploy m ent opportunities are n ot keeping pace with rising m an-hour p rod u ctivity. Th e same appre hensions are evident in Australia, B elgium , Canada, France, the Federal R epu b lic o f G erm any, and the U nited K in gd om . It seems to be the fear o f creeping unem ploym ent, developing sim ulta neously w ith rising produ ction and p rod u ctivity and spreading from one industry branch to another, that is at the root o f m isgivings about the future. T h e on ly w a y in w hich [these appre hensions] can be countered is b y concentrating on the facts, b y giving sustained attention to the changing em ploym ent situation, and b y careful planning n ot on ly to prom ote full em ploym ent and econom ic grow th bu t also to foster the social policies which must underlie and accom pa n y such growth. I t is recognized that large-scale shifts o f workers from one industry, occupation, or undertaking to another are an inevitable consequence o f tech nological change and that the necessary adjustm ents can be m ade sm ooth ly and easily on ly in conditions o f full em ploym ent. In general, the shifts under w a y seem to continue and rein force trends already evident— a general ten dency aw ay from agri culture and from certain m anufacturing industries and tow ard new or developing m anufacturing and service industries and occupations. I w ould add, how ever, that according to m an y observers, the short-run im pact o f autom ation and analogous developm ents m a y b e greater on w hite-collar em ploym ent than on m anufacturing em ploym ent. Outside o f certain m anufacturing industries, the greatest potential for autom ation lies in office w ork and it is already being introduced rapidly in activities in w hich data-processing plays a pre dom inant part. Finally, so far as the com position o f the labor force is concerned, the tendency is for you n g workers to enter em ploym ent later and for older workers to retire from w ork earlier, n ow that o ld age pension schemes are com m on. In general, it is expected that these trends will be reinforced 17 to strengthen guidance and counseling facilities is particularly necessary, b o th as a means o f p rov id ing em ploym ent inform ation in terms o f an indi vidual w orker's needs and as a means o f givin g him the personal help and psych ological encourage m ent w hich m a y well b e necessary. M o s t em p loym ent services are particularly w eak in this area and m ost com m u nity counseling facilities are inadequate. A b o v e all, perhaps, there is the im portan t ques tion o f incom e m aintenance during any period o f unem ploym ent. In m an y countries, u n em ploy m ent insurance n ow provides a first net o f assist ance for the m a jority o f workers. B u t h ow far are benefits adequate in am ount o r in duration? On w hat conditions are th ey granted? H o w great a sacrifice is im posed on a w orker w ith continuing financial obligations? E ven w ith the addition o f dismissal bonuses and supplem entary un em ploy m ent benefits o f various kinds, is n o t the w orker asked to shoulder to o h eavy a part o f the burden o f technological readjustm ent? These are the questions the workers are asking. There is a clear need to keep the w hole problem o f u nem ploym ent under review , n o t m erely the services providin g financial assistance in the event o f it. M o s t countries have m achinery for review ing the general level o f em ploym ent. F ew have system atic m ethods for analyzing the con ten t o f the unem ployed population, for studying the rem e dies fo r unem ploym ent. Y e t different kinds o f u n em ploym ent require different kinds o f action . tions on technological progress and those which are to be regarded as affording reasonable safe guards for the interests o f em ployers and workers affected b y technological progress is n ot easy to draw. T h e question o f where and h ow this line is to b e drawn is one which has international as well 'as national im plications. Dismissal and Reemployment T h e m ost serious problem s naturally arise for workers whose em ploym ent is term inated as a result o f technological changes. T h eir future pros pects o f reem ploym ent depend prim arily on the bu oy a n cy o f the em ploym ent situation. M u ch depends on the w a y dismissals are handled b y m anagem ent. A dvan ce n otice— as m u ch as possible— is one im portan t factor. Such n otice assures fair treatm ent to all workers, allows the worker to prepare for the econ om ic adjustm ent he will have to make. W hile it is com m on to find provision for advance n otice in m od em collective agreements, the period o f n otice is still very short indeed— frequently somewhere betw een a bou t 2 days and 2 weeks— far too short to enable any worker to do m uch advance planning abou t his future.2 A second element o f im portance is the provision o f full inform ation as to the reasons w h y the dis missals are u navoidable; the m aintenance and application o f rules— agreed w ith the w orkers' representatives— to govern the order and condi tions o f dismissal are essential to prom ote under standing and to ensure fair treatm ent am ong the workers affected.3 In general, seniority is the main determ inant o f the order o f dismissal, and this seems to w ork ou t in as equitable a m anner as any other rule that could be devised. So far as the conditions o f dismissal are concerned, the m ost im portant factor is financial. W h at will the w orker have to live on ? I t is m y view that em ployers and all others concerned w ith the problem w ould d o well to give serious consideration to this question [of dismissal com pensation]. A final im portant element is providin g help in m aking the contacts necessary to find other work. Som etim es direct contacts betw een plant personnel departm ents have had excellent results. T h e em p loym ent service, too, can help. M oreover, dur ing a period o f rapid technological advance, action Problems of Labor Mobility T h e possibility o f lab or displacem ent, com bin ed w ith the prediction that autom ation, a tom ic en ergy, and other technological changes are lik ely to prom ote flexibility in industrial location and to m ake fo r rather far-reaching changes in the exist ing geographical pattern o f em ploym ent, has fo cused attention on problem s con n ected w ith the m ob ility o f labor. I t seems generally agreed that in the long run the em ploym ent m arket will have to display a higher degree o f geographical m obility. * E d it o r ' s N o t e .— F o r a descrip tion o f such agreem ent p rovision s in th e U n ite d States, see L a y o ff, R e ca ll, an d W ork -S h arin g P rocedu res, M o n t h ly L a b o r R e v ie w , Jan uary 1957 (p p . 1-7). * E d it o r ' s N o t e .— F or a d escrip tion o f dism issal p a y pro visio n s in 'm a jo r con tracts in th e U n ite d States, see D ism issal P a y P rovision s in M a jo r B a r gain in g A greem ents, M o n t h ly L a b o r R e v ie w .June 1957 (p p . 707-713). 18 T his is a p oin t emphasized b y m an y E uropean studies. B u t it is also agreed th at there are con siderable lim itations on the m ob ility o f workers even in C anada and the U nited States. A g ood m an y recent studies have fou n d that in practice workers are n ot so m obile as is com m on ly b elieved : that w hat m ob ility there is, is achieved on ly at a price o f considerable sacrifice exacted from the w orker and his fam ily. Thus, it is b ecom in g m ore w idely accepted that the en couragem ent o f labor m obility, so far as it is needed b y events, is a nationw ide responsibility; that the workers cannot be expected to bear all the risks and all the costs o f econ om ic changes w hich destroy their jo b s ; and that b roa d ly based cooperative action has to be taken b y governm ent, industry, and labor, first to confine the need for m ob ility to a m inim um b y proper stu dy and planning o f industrial location and o f the introduc tion o f technological im provem ents, and second to share equitably the risks and costs o f the m ob ility [which] will [still] be required. T h e trade unions attach a great deal o f im portan ce to the developm ent o f a concrete p ro gram o f action to deal w ith these problem s. Som e com panies have helped to give practical effect to com panyw ide transfer plans b y arrange m ents [designed] to help the w orker m ove to openings in another plant in the same com pa n y b u t in a different locality. G overnm ent services h ave an im portant role to p la y in facilitating interarea em ploym ent readjustm ents and in p ro m oting the kind o f labor m ob ility that is really necessary and does n ot im pose an un du ly h eavy burden on the workers affected. T h e em p loy m ent service is the m ost directly affected, supply ing em ploym ent inform ation and advice and often financial assistance. M a n y other services are also directly concerned, e. g., those responsible for the placing o f governm ent contracts affecting local em ploym ent opportunities. There are still further problem s w hich need attention, problem s w hich are perhaps the m ost difficult o f solution. These are the hum an problem s o f lab or m o b ility : workers too old to envisage a m ove, single w om en reluctant to face life in a new com m unity, m en and w om en boun d b y strong ties to the com m u nity in w hich th ey were born, discouraged workers w ho fear that if they did m ove th ey w ould n ot find w ork, workers m oved around so m uch in wartim e that th ey w ant a settled life, and so forth. G iven the difficulties o f transferring people to new areas, cannot m ore be done to take new jo b openings to the places where people are? T o w hat extent and in w hat circum stances is this sound p o licy? T h e need is to look at the problem s anew and in the fresh terms o f the technological changes now occurring. This is really the crux o f the m atter: we need a p ositive approach to all o f the em ploym ent problem s accom pan yin g or likely to accom pan y the technological developm ents w hich are chang ing the industrial structure. T h e negative ap proach represented b y the paym ent o f u nem ploy m ent benefits, while w h olly necessary, is n ot enough. T h e im portant results must, as always, be accom plished through a broad and positive approach to changing em ploym ent op p ortu n ity ; and such an approach depends on the cooperation, good will, and practical action o f all concerned, directed tow ard bringing about the [effective and necessary] changes in em ploym ent policies and institutions. 1 9 An Inquiry into the Effects of Automation E dgar W e in b e r g * h e m ost intensive stu dy since the 1930's o f the effects o f technological change was con du cted last O ctober, when 26 leaders in various fields testified at congressional hearings on autom ation.1 T h e hearings were aim ed at developing infor m ation on the nature and im plications o f auto m ation, through studies o f selected industries. M a jo r areas o f inquiry included the extent o f potential em ploym ent displacem ent, the need for training and fo r retraining displaced workers, and the distribution o f anticipated gains in p ro d u ctivity. These and other related questions were discussed b y qualified persons in six m a jor fields selected as illustrative o f problem s w hich m a y b e faced in the trend tow ard autom ation— m etalw orking, data processing, and the chem icals, electronics, railroad, and com m unication indus tries. T h e relation o f the technological changes to the N ation 's progress as a w hole was review ed b y scientists and econom ists. Sum m arizing its findings, the subcom m ittee w hich con du cted the hearings pointed up tw o conclusions from the evidence: first, that “ all elements in the A m erican econ om y accept and w elcom e progress, change, and increasing pro d u c tiv it y "; and second, that although “ it is im portant to n ote that . . . on ly a relatively small . . . fraction o f the total labor force will be directly in volved . . . no one dare overlook or d en y the fa ct that m any individuals will suffer personal, m ental, and physical hardships as the adjustm ents go fo r w a r d ."2 T h e subcom m ittee foun d that “ b oth organized labor and m anagem ent are apparently aware o f and intent upon seeing T J a n u a r y 1956 that the hum an elements are n o t disregarded." C oncern fo r the workers affected also underlay the su bcom m ittee's “ best and b y far the m ost im portant single recom m en d ation "— that “ the private and public sectors o f the N ation do every thing possible to assure the m aintenance o f a good , healthy, dynam ic, and prospering econ om y, so that those w ho lose out at one place as a conse quence o f progressive tech n ology will have no difficulty in finding a dem and fo r their vices elsewhere in the e co n o m y ." Th is article sets forth som e o f the highlights o f the article hearings. R epresentative statem ents b y various witnesses have been grouped around six topics relating to autom ation: the definition o f autom ation ; its relation to past developm en ts; trends in k ey industries; factors affecting the general o u tlook ; som e im plications; and proposed policies. Definition of Automation F rom a review o f the attem pts b y witnesses to define autom ation, it is apparent that the term “ au tom ation ," like “ mass p ro d u ctio n " or “ m ech a n ization ," encompasses a com plex o f innovations and that the definitions tend to v a ry w ith the experience o f each speaker. R alph J. Cordiner, president o f the General E lectric C o., expressing the engineer's view point, defined autom ation as “ ‘continuous autom atic p rod u ction ,' largely in the sense o f linking together o f already highly m echanized individual operations. A u tom ation is a w a y o f w ork based on the con cept o f produ ction as a continuous flow , rather than processing b y interm ittent batches o f w o rk ." L ook in g at current developm ents in perspective, D r. Vannevar Bush, president o f the C arnegie Institution o f W ashington, defined autom ation •Of th e B u rea u’s D iv is io n o f P r o d u c t iv ity a n d T e ch n o lo g ica l D e v e lo p m ents. A u to m a tio n a n d T ech n ological C h ange. H earings Before the S u b com m ittee o n E c o n o m ic Stabilization o f the C on gressional J oin t C o m m itte e o n the E c o n o m ic R e p o rt (84th C o n g ., 1st sess.), pursuan t to sec. 5(a) o f P u b lic L a w 304, 79th C o n g., W a sh in gton , 1955. Im pressed w ith the “ im p ortan ce o f con tin u a lly increasing industrial p r o d u c t iv it y ,” the Congressional Joint C o m m itte e early in 1955 h a d directed its s u bcom m ittee (R epresen tative W rig h t P a tm a n o f Texas, chairm an) “ to s tu d y th e im p a ct o f au tom ation o n lon g-ru n e m p lo y m e n t an d in vestm en t levels.” T e s tim o n y w as g iven du rin g 9 d ays in O cto b e r b y 14 industrialists, 6 labor leaders, 3 G o vern m en t officials, an d 3 academ ic leaders. * A u to m a tio n an d T e ch n ological C h ange, R e p o rt o f the S u b com m ittee o n E c o n o m ic S tabilization to the Joint C o m m itte e o n th e E c o n o m ic R e p o rt, Congress o f the U n ite d States, W ash in gton , 1955. 1 20 M . A . H ollengreen, president o f the N ational M ach in e T o o l Builders’ A ssociation. A s a g o o d example, he cited the progressive autom atization o f m etal cuttin g lathes from single to m ultiple spindle tools and thence to autom atic chucking m achines on which, “ b y the twenties, it was possible to perform 10 to 15 operations . . . w ithout m ovin g the w ork b y h an d .” E lectric and autom atic controls and, m ore recently, autom atic gaging devices enabling the m achine to correct its ow n errors have been added. R alph E . Cross, executive vice president o f the Cross C o., described the “ sectionized transferm a tic,” one o f the m ost recent developm ents in machine tool autom ation. First p u t into operation in m id-1954, this is a line o f m achine tools, 350 feet long, w hich perform s 555 m achining operations on engine cylinder b lo ck castings. I t is divided into five sections to m inim ize “ the tim e lost fo r changing tools and m inor repairs. A n y one o f the sections can be stopped while the other sections continue to produce at their norm al rate.” T h e progress o f autom atic equipm ent in the telephone industry was described b y C lifton W . Phalen, president o f the M ichigan B ell Telephone C o. First introduced in 1920, dial-operated tele phones tod a y account for abou t 85 percent o f the total. “ Operators are n ow dialing directly nearly 60 percent o f long-distance calls. Custom ers n ow dial directly abou t a quarter o f all calls outside local areas.” A u tom atic message accounting (A M A ), currently being introduced, “ em ploys punched tapes which register the calling telephone, the called telephone, the tim e connection was established, and the time connection ended. A m achine takes the inform ation off the tape and assembles it for each custom er.” A num ber o f innovations leading to m ore auto m atic handling o f freight cars in classification yards were described b y S. R . H ursh, chief engineer o f the Pennsylvania R ailroad. A new $34-m illion terminal facility, at C on w ay, Pa. (on the line b e tween Pittsburgh, D etroit, and C h icago), will han dle the trem endous traffic load through a system o f autom atic retarder speed contorts, autom atic switching, and similar devices. broadly as covering the “ relegation to a m achine o f the function o f perform ing operations previously perform ed m anually.” H e added that “ M an now has the dream o f m aking m achines w hich are like himself, and w hich can hence becom e his slaves. A n d he has progressed a long distance tow ard this ob jective, and will progress further.” Secretary o f L a bor James P. M itchell suggested that, su bjectively, autom ation produces a fear o f change. In a technical sense, he said, “ the w ord represents technological change, w hich surely is nothing new .” Relation to Past Developments In relating autom ation to past changes, w it nesses differed over the n ov elty o f current de velopm ents. D r. C ledo B runetti, director o f engineering research and developm ent o f General M ills, In c., said: “ A u tom ation, a new ly coined w ord to describe an old, old process . . . cannot be said to have begun on any certain date, nor can it be said that it will end at any definite time. A u tom ation is in truth bu t a phase o f our con tinuing technological advan ce.” D r. E dw in G. N ourse, form er chairman o f the C ouncil o f E con om ic Advisers, disagreed w ith this conception. “ [Autom ation] has its roots in m echa nization, to be sure, bu t som ething new was added when electronic devices m ade possible the w ide spread application o f the feedback principle. T h e three earlier phases o f industrialism— m echaniza tion, continuous process, and rationalization— all continue, bu t have been given a new dim ension.” Secretary M itchell said: “ I t represents a m o v e m ent certainly as old as the industrial revolution and p rob ab ly older. . . . Its latest m anifesta tion, com ing as it has in a favorable setting o f grow th and prosperity, has appeared with relative swiftness and in som e w ays spectacularly. I t has com e with such devices as com plex autom atic systems, electronic controls and regulators, feed back systems, transfer machines, conveyors, and the like.” Trends in Key Industries A utom ation in m etalw orking is m erely a general term which involves the steady developm ent o f the accu racy and power, speed and p rod u ctivity o f m achine tools over the years, according to T h e progress o f electronic data-processing m a chines in scientific and clerical w ork was described b y tw o officials from G overnm ent agencies which have done pioneering w ork in these fields. R obert 21 W . Burgess, d irector o f the Bureau o f the Census, indicated that the U nivac, delivered in 1951, has been used effectively on the m on th ly population and business surveys since 1953. C ost o f the current population survey has been cu t in half and w ork that cou ld n ot have previously been done because o f high cost (e. g., adjusting tim e series fo r seasonal variations) is n ow practicable. D r. A . V . A stin, director, N ational Bureau o f Stand ards, described F O S D IC (film optical sensing d evice for input to com puters), an autom atic m achine recently developed b y that B ureau for translating data on the record sheets o f census enumerators into a form to be fed directly into an electronic com puter. D iscussing the use o f electronic com puters at General E lectric C o., M r. C ordiner revealed their extensive use in engineering and p rod u ct develop m ent and, m ore recently, in payroll accounting, m aterial control, and general and cost accounting. H e also m entioned the com p a n y’s plans for their application in the near future to billing, inventory and sales reports, b u d get preparation, and factory scheduling. “ I t is our feeling,” M r. Cordiner stated, “ that the m edium -sized com puters will have the greatest usefulness for business in the im m ediate future.” N um erous plants in the chem ical and petroleum refining industries already have introduced a high degree o f continuous or autom atic operation, according to Professor Th om as J. W alsh, o f the Case Institute of T ech n ology. Gases, fluids, and pow dered solids are handled and processed in pipes or ducts w ith devices to con trol the flow and measure changes during the operation. O tto Pragan, research director o f the A F L International Chem ical W orkers U nion, poin ted ou t that one indicator o f the relatively high degree o f m echani zation is the total capital investm ent per p rod u c t i o n w orker: $26,665 in the chem ical industry com pared w ith $12,933 for all m anufacturing. In electronic-goods m anufacturing, several de velopm ents poin t tow ard greater autom ation or m echanization. D r. B runetti described A u to-fa b, a m achine for assembling electronic com ponents on printed circuit boards now being used in largescale p rodu ction o f com puters. D o n G . M itchell, chairman and president of Sylvania E lectric P rod ucts, In c., announced that his com pa n y is devel op in g new machines for autom atically applying hundreds o f thousands o f separate phosphorous dots on the face o f a color television tube, w ith a high degree o f precision. Factors Affecting the Outlook A lth ou gh there was general agreement concern ing the trend tow ard greater autom ation, opinion varied concerning the rate o f introduction o f new devices. Som e persons foresaw rapid change because o f greater expenditures fo r industrial research. “ A s a result,” W alter P. R euther, then president o f the Congress o f Industrial Organizations, stated, “ the flow o f w hat m a y be considered routine technological innovations— new produ ction m ethods, new materials, and m achines applicable on ly to specific processes o r industries, and im provem ents in w ork flow — has been greatly accelerated.” In railroading, W . P. K en n edy, president o f the B rotherhood o f R ailroad Trainm en, foresaw a stepup in autom atizing freight yards because o f large expected savings, excellent financial position o f the railroads, and new electronic developm ents for the autom atic handling and dispatching o f freight cars. “ R ailroad capital spending program s . . . are expected to total $20 billion, or double the recent annual rate o f investm ent, in the next decade.” T h e dem and for higher living standards and the anticipated slower rate o f grow th o f the labor force in relation to population change will be m a jor factors accelerating m echanization, a ccord ing to D o n G . M itchell. A shortage o f clerical labor was cited b y H ow ard Coughlin, president o f the Office E m p loyes, International U nion, as a signifi cant force in greater autom ation o f office w ork. T h e size and com plexity o f scientific and business problem s, D r. A stin poin ted out, require greater use o f new m ethods o f data processing. “ A dvan ces [in science and technology] have n ow reached a stage where further progress w ould be im practicable or uneconom ical w ithout th em .” Som e com plex factors that m ust be considered when adopting autom ation, were also discussed. D . J. D avis, vice president o f the F ord M o to r C o., in charge o f m anufacturing, poin ted ou t that autom atic m achinery m ust be highly flexible, so that it can be m odified w ithout excessive cost to accom m odate expected changes in design o f parts. O nly lim ited application o f autom ation is antici- 22 pated in F ord 's assembly plants because o f the scattered location o f such operations, and con tinual changes in b o d y structure and trim design. M r. Cordiner emphasized three k ey factors governing the pace o f technological advance: T h e difficulty o f designing w orkable autom ation; the financial risks; and the need for m anagem ent to assure wider m arkets to ju stify the investm ent. H ence, “ technological change in industry is a gradual p rocess." Professor W alter S. Buckingham , Jr., econom ist o f the Georgia Institute o f T ech n ology, pointed ou t that no significant application o f autom ation seems likely in some im portant industries, such as agriculture, mining, construction, retailing, and professional fields, “ because o f the highly indi vidualistic nature o f the product, the need for personal services, the advantages o f small-scale units, or vast space requirem ents." to expand, along with the rapid im provem ents in produ ctive efficien cy." T h e prospects o f displacem ent o f telephone and railroad workers were set forth in some detail. Joseph A . Beirne, president o f the C IO C om m unications W orkers o f A m erica, predicted: “ I f telephone business continues to expand o n ly at the m odest 1954 rate, that is, annual increases o f 4.6 percent in telephones and 3.8 percent in telephone calls, we estim ate conservatively that b y 1965 there will be anywhere from 100,000 to 115,000 fewer people em ployed b y the B ell S ystem ." M r. K en n edy cited specific instances o f localized displacem ent o f railroad workers as a result o f m odernization o f classification yards. “ A t H am let, N . C ., . . . the num ber o f yardm en has been cu t b y 35 percent. . . . A t the U nion R ailroad C o., Pittsburgh, approxim ately 250 yard em ployees have already been displaced . . . C on struction o f tw o new yards . . . at M em phis, Tenn., and Tulsa, Okla., b oth o f which w ill go into service early in 1956, will in the opinion o f the local brotherhood representative affect em ploym ent in the tw o terminals at least 25 p ercen t." T h e general expansive im plications o f autom a tion for em ploym ent were described b y several witnesses. Secretary M itchell said, “ I repeat, there is n o reason to believe that this new phase o f technology will result in overwhelm ing problem s o f readjustm ent. Science and invention are con stantly opening up new areas o f industrial expan sion. W hile older and declining industries m ay show reducing opportunity, new and vibrant in dustries are pushing out our h orizon s." M r. C ordiner indicated four factors at work to create new and increased em ploym ent opportunities. T h e “ chain rea ction " o f econom ic grow th (due to lower prices increasing the volum e o f business); the ex panding service industries and increased tim e for educational and recreational activities; expansion o f industries for designing, selling, building, and installing new m achinery; and the grow th o f entire new industries as a result o f autom ation. “ On the h orizon ," M r. Cordiner saw “ an atom ic energy industry, a transistor, and sem iconductor industry, an industry for the production o f the supermetals like titanium and zirconium , and even m anm ade diam onds. . . . Based on our experi ence w ith these [computing] m achines . . . it m a y well be that the com puter-derived technologies Other lim itations cited b y D r. Buckingham , as “ m ore tem porary, b u t . . . nevertheless signifi can t at the present tim e," include: “ (1) the high initial cost o f the equipm ent w hich for the time being at least prevents all b u t the larger firms from using it; (2) the shortage o f h igh ly trained operators and analyzers; and (3) the tim e required to analyze the problem s, reduce them to equations, program the com puters, and translate the answers into useful d a ta ." Implications of Automation There were m ajor differences o f opinion as to the econom ic and social effects o f autom ation. View points regarding its im pact on em ploym ent were o f tw o general types: one emphasizing the im m ediate possibilities o f displacement, and the other, stressing autom ation's expansive effects on em ploym ent. Expressing the view point o f the form er group, M r. R euther stated: “ A utom ation, in addition to the m ore conventional im provem ents in machines and w ork flow, will be increasing the rate o f the national econ om y's rising m an-hour ou tput still further. Instead o f average annual p rod u ctivity increases o f som e 3 to 4 percent, the annual rate o f rising m an-hour ou tput in the national econ om y m ay reach 5 to 6 percent or m ore . . . [a rate] capable o f displacing about 3% million or m ore em ployees each year, if the national econ om y fails 23 will be a m a jor source o f new em ploym ent in the 1960's and 1970's.” operator into the supervisor o f an autom atically controlled operating system .” These occupational shifts have already occurred in a num ber o f industries. A t F ord 's Cleveland and D earborn engine plants, according to M r. D avis, fewer em ployees engaged directly in p ro duction were em ployed in 1954 than in 1950, but there was a substantial increase in the num ber o f skilled maintenance personnel. In the telephone industry, M r. Beirne pointed out, the num ber o f professional sales, business office, clerical, and maintenance workers had increased between 1945 and 1953 considerably faster than the num ber o f operating em ployees. A similar story was related b y M r. Pragan for the chem ical industry: “ In 1954, there were 2 production workers to each nonproduction worker, while in 1947 the ratio was as high as three-to-one. . . . T h e predom inance o f autom atic equipm ent . . . makes m aintenance skills, such as m achin ists, pipefitters, electricians, instrumentmen, etc., particularly im portan t.” “ Prelim inary studies m ade b y the D epartm ent o f L a b o r,” Secretary M itchell said, “ indicate that we have a shortage o f skilled workers in this cou n try today. A s industry grows m ore com plex, this shortage is boun d to increase unless adequate training program s are set up. W e m ust m ake sure that we do n ot waste our m anpower, our m ost valuable resource . . . ” A u tom ation 's im pact on the position o f small business was also assessed. M r. R euther b elieved : “ F or the m ost part it is the large com panies that will be in the best financial position to scrap old equipm ent and old plants, and replace them with new autom ated m achines . . . thus increasing still m ore the m argin o f efficiency w hich th ey en joy over their smaller com petitors.” D r. Bush, however, saw new opportunities for small units to prosper: “ I f large m anufacturing com panies turn to autom ation in extreme form . . . th ey also increase their own rigidity and render it m ore possible for the small industrial unit to prosper b y reason o f its inherent flexibil ity . . . they can get close to their custom ers and m eet their needs intelligently and th ey can change rapidly w ith the times and the trends.” Finally, the im plications o f autom ation fo r the stability o f the econ om y were weighed. M r. M arshall G . M u n ce, a director o f the N ational A ssociation o f M anufacturers, said that a certain am ount o f “ reallocation o f jo b opportunities” will be inevitable, b u t that the rate o f voluntary quitting b y workers in Am erican industry is suf ficiently high— 2 percent per m onth in m anufac turing— to avoid any widespread displacem ent o f individuals. “ B y n ot replacing these people as rapidly as th ey depart, reallocation occurs b y attrition alone,” he said. T h e rapid grow th o f em ploym ent in the elec tronic, telephone, and chem ical industries was cited as illustrative o f the expansive effect o f autom ation. “ Television to d a y ,” according to D r. B runetti, “ w ould n ot be a mass m arket were it n ot for use o f autom atic m achinery in kinescope . . . and com pon en t tube m anufacturing.” W hile witnesses differed on the num ber o f job s that w ould be affected, there was general agree m ent on the nature o f changes in skills and o ccu pational requirements. Secretary M itchell, look ing at the historical record, saw a reduction in unskilled workers, semiskilled workers m ovin g into skilled areas, and skilled workers approaching the status o f technicians. “ W e can expect these trends to continue . . . Im provem ents in in dustrial techn ology will reduce the num ber o f boring, routine, and repetitious jobs. A n d I believe w e can expect that this will m ove all workers to a higher level o f attainm ent and self developm ent. W e can expect to see increased dem and for workers with a high sense o f responsi b ility and versatility, for m athem aticians, engi neers, and technicians o f all sorts, and for scientists and researchers. T h e w orker o f the future will require better basic education and better training than he gets n ow .” James B . C arey, president o f the C IO In ter national U nion o f E lectrical W orkers, believed that the extent o f the occupational changes that m a y result from autom ation will be com parable to that o f the first industrial revolution which replaced the handicraft worker with the m achine tender or m achine operator. “ A utom ation . . . tends to replace the human regulation and control o f m achines and thereby changes the m achine 2h C ordiner took a generally optim istic view o f the consequences o f greater m echanization, saying: “ W ith high investm ents in m achinery, industry has one m ore incentive to keep those m achines running as steadily as possible. T his provides a great stimulus fo r better planning, m ore profes sional m arketing, and all the other techniques for m aintaining steady dem and and em ploym en t.” D r. N ourse, on the other hand, was concerned about the developm ent o f new sources o f in stability, particularly fo r the im m ediate future. “ I strongly suspect that w e h ave already built up at m an y spots a p rod u ctive ca p acity in excess o f the absorptive cap acity o f the forth com in g m arket under city and cou n try incom e patterns that have been provided, and em ploym ent patterns that will result from this autom ated opera tion. . . . w e have n ot y e t dem onstrated our ability to adjust the actual m arket o f 1956-57 . . . to the p rod u ctivity of the produ ction lines w e have already m odernized.” Secretary M itchell, in releasing the figures on postw ar trends in m anufacturing prod u ctivity, pointed ou t that, “ the average postw ar gain in p rod u ctivity does n ot appear to be extraordinarily high. O ur current estimates show an average annual increase from 1947 to 1953, ranging from 3.1 percent b y one measure, to 3.6 percent b y another.” Proposed Policies Perhaps one o f the m ost n otew orth y features o f the policies proposed b y witnesses to m eet social problem s raised b y increased m echanization was the general acceptance o f the desirability o f the technological changes themselves. N o one p ro posed legislation to regulate directly the intro duction o f new m achinery. M a n y witnesses, how ever, agreed on the need for special measures, whether p ublic or private, to cope w ith the labor and other econ om ic problem s that m a y be created. D r. N ourse sum m ed up his point o f view : “ . . . the econom ic problem s posed b y this technological advance can be solved on ly b y a com bination o f com petitive pressure, business statesmanship, and constructive public p olicy . . . rather than with the idea that the problem s will take care o f them selves or be disposed o f autom atically b y the invisible hand o f free enterprise.” M r. M unee cautioned: “ A utom ation clearly will be a blessing' to the N ation if it is allowed to grow b y natural econom ic selection and if it is n ot distorted b y un wise and unnecessary efforts to thwart its effects.” Considerable attention was directed to measures that m ight b e taken b y com panies and unions. M r. C ordiner declared: “ G o o d planning for auto m ation includes planning fo r the all-im portant human problem s, as well as m echanical and financial problem s.” R epresentatives o f the G en eral E lectric C o. and other electronic goods co m panies indicated that th ey plan changes so that norm al attrition absorbs shifts in em ploym ent. General E lectric provides a w ide range o f training on -the-job, through training schools, and special technical courses. General M ills has w orked ou t a retraining program for its em ployees on new jobs, in cooperation w ith local schools and unions. M r. Phalen set forth the B ell System 's plans for m inim izing the problem s o f individual em ployees displaced b y dial conversions: setting the date o f change 3 years in advan ce; inform ing the em ployees; during the preconversion period, filling vacancies w ith tem porary em ployees on ly, and postponing retirem ents; and retraining and trans ferring displaced operators to other jo b s or com m unities. “ In m ost cases, as a result o f these measures, few, if any, regular em ployees m ust be laid o ff.” Secretary M itchell cited studies b y the Bureau o f L a bor Statistics o f tw o com p a n ies8 in w hich, through advanced planning, new autom atic m a chinery was installed w ith a m inim um o f disturb ance in industrial relations. “ Personnel planning is as essential to m odern industry as are the new m achines.” H e also described som e o f the D e partm ent o f L a bor's program s that touch on the effects o f autom ation : case studies o f plants; surveys o f com m unity readjustm ent to reduced em ploym ent opportunities; a program to expand the skills o f the labor force; and a stu dy o f the problem s o f older workers. O f direct im portance are the increasing activities in the States to im p rove the effectiveness o f the public em ploym ent offices and their unem ploym ent com pensation program s. A djustm ents at the plant and com pan y levels to the com ing o f autom ation also involve certain * See p. 79. collective bargaining issues. U nion spokesmen voiced la b o r s traditional dem ands for a share in the N ation ’s increasing p rod u ctivity in the form o f higher wages, fringe benefits, and shorter hours. A 4-day, 32-hour workw eek was a dvocated b y M r. R euther, as “ an im portant step towards m inim izing potential social dislocations.” M r. Beirne poin ted ou t that the need for shorter hours for telephone operators has been intensified be cause “ equipm ent th ey handle requires m ore numerous simultaneous operations resulting in increased nervous tension.” Im p roved transfer and layoff procedures in collective agreements are also sought. M r. Beirne revealed that the C om m unications W orkers union is seeking provision for interdepartm ental and intercom pany transfers, and com pan y paym ent o f transfer expenses. A uniform con tract covering all B ell System workers was believed best suited to m eet these issues. T h e Office E m p loyes’ In ter national U nion, according to M r. C oughlin, is insisting on “ bum p b ack ” provisions in layoff clauses. Som e special collective bargaining issues in continuous process industries, that m ight be raised elsewhere as autom ation advances accord ing to M r. Pragan, include special prem ium p a y m ents for rotatin g shifts and split workw eeks, and revision o f jo b evaluation system s to cop e w ith the trend tow ard com bining tw o or m ore job s, such as instrum entm an and electrician. L a bor leaders generally urged th at greater attention b e given to protectin g the jo b s o f older workers, w ho, on ce displaced, m a y find greater difficulty in finding new job s. M r. Pragan pointed o u t: “ T h e threat o f elim ination o f entire depart m ents or jo b s through autom ation m a y m ake unw orkable seniority system s w hich are based on departm ent or jo b seniority system s . . . [the senior em ployee] m ust n ot be passed over . . . sim ply because o f age or the disinclination o f the em ployer to p rovide the training w hich w ould enable him to qualify for the jo b .” L ook in g b eyon d collective bargaining, all labor witnesses favored governm ent action for a lower retirem ent age and a shorter legal workweek. “ T o p rovide the expanding m arkets that are the basis for econom ic grow th ,” M r. R euther, along with M r. C arey, also recom m ended a program covering, am ong other things, a m ore adequate unem ploym ent com pensation system , a Federal m inim um wage o f $1.25, and G overnm ent aid to distressed com m unities. M r. M u n ce favored an alternative to govern m ent action. “ The m ost effective w a y to increase the buyin g pow er o f all consum ers is through reduction o f the cost o f the good s and services th ey b u y .” Since autom ation will require large am ounts o f capital, M r. M u n ce proposed a gradual reduction in corporate and individual tax rates. So far as training and education are concerned, b o th labor and m anagem ent witnesses agreed on the need for im proved program s, particularly to m eet the shortage o f engineers and scientists. M r. R euther favored com pany-financed retraining for displaced workers and expanded general, vocation al, and professional education. In connection w ith the shortage o f skills, Secretary M itch ell declared, “ w e can n ot afford discrim ination in the utilization o f the skills o f any grou p.” S upport for m ore extensive research on the progress and problem s o f increasing technological developm ent cam e from several witnesses. F a c tual inform ation on the effects o f autom ation was considered necessary for planning sound policies o f b o th industry and governm ent. M r. R eu th er recom m ended continuing stu dy o f autom ation, w ith the Join t C om m ittee on the E con om ic R e p o rt serving as a clearinghouse for inform ation developed b y governm ent agencies and universities. A m on g the types o f studies deem ed essential were case studies o f individual plants, and analyses o f shifts in em ploym ent, collective bargaining provisions relating to tech nological change, business investm ent plans, and education facilities. John I. Snyder, president o f U nited States Industries, In c., advocated the establishm ent o f a national labor-m anagem ent council o n jo b o p p or tunities to stu dy the progress o f autom ation, investigate local u n em ploym ent problem s, and suggest solutions. John D iebold , president o f John D ieb old & A ssociates, In c., recom m ended extensive studies b y the B L S to determ ine the im pact o f autom ation on costs, com petition, location , etc., in industries using and p rodu cing equipm ent; on skills, wages, lab or relations; and on training and educational requirements. D r. B uckingham felt that a com prehensive stu d y o f the econ om ic system , like the T em porary N a tional E co n o m ic C om m ittee’s investigations o f 26 16 years ago, was needed to guide the policies o f private groups. Speaking m ore broadly, D r. N ourse believed that autom ation points up the need for m ore scientific rationalization o f national econom ic policies. “ This . . . calls for a sim ply stupen dous am ount o f grassroots data as to w hat is actually happening at an infinite num ber o f spots in the econom ic p rocess." N ew ob jective analyses— studies o f input-output, consum er ex pectations, and m on ey flows— seem to D r. N ourse destined to have increasingly wide application in con n ection w ith econom ic problem s created b y rapid technological advance. Recommendations of the Subcommittee A s already indicated, the subcom m ittee re garded as its cardinal recom m endation one that public and private sectors w ork together to m ain tain a good , healthy, dynam ic, and prospering econ om y, to assure displaced workers o f finding a dem and for their services elsewhere. A lthough it com m ented on the lack o f need for broad-gage econom ic legislation, the subcom m ittee recom m ended that all levels o f governm ent p a y serious attention to the need for specific and broad program s to prom ote secondary and higher edu cation, and to ease the problem s and eliminate local p ock ets o f chronic or short-run unem ploy m ent, w hatever the cause. I t suggested that the Federal G overnm ent becom e a m odel em ployer. Other recom m endations stressed the desira b ility o f increasing the effectiveness o f the U nited States E m ploym ent Service in dealing with the problem o f the m iddle-aged worker and in placing skilled workers, and expressed the subcom m ittee's interest in im proving econom ic statistics, espe cially those relating to p rod u ctivity and occu pa tional shifts. T h e subcom m ittee pointed ou t that industry should, b y careful planning and schedul ing, attem pt to minimize the adjustm ents o f workers and the stoppage o f em ploym ent. In conclusion, the subcom m ittee announced its inten tion “ to review regularly the progress o f techno logical change and the evidence o f occupational changes." “ M a n y o f our neighbors [in L on d on in the 1850's] were descendants o f French H uguenots w ho fled from France after the revocation o f the E d ict o f N antes and built their characteristic houses with little leaded w indowpanes and in that new hom e plied their wonderful skill in silk w eaving that brought fam e and w ealth to Spitalfields. B u t the passing o f tim e had brought shadows to the buildings and changes to the industry. One o f m y m ost v ivid early recollections is the great trouble that cam e to the silk weavers when m achinery was invented to replace their skill and take their job s. N o thought was given those m en whose trade was gone. M isery and suspense filled the neighbor h ood with a depressing air o f dread. T h e narrow street echoed w ith tJie tramp o f m en w alking the street in groups w ith no w ork to do. B urned into m y m ind, was the indescribable effect o f the cry o f these men, ‘ G od, I 'v e no w ork to do. L ord strike m e dead— m y wife, m y kids w ant bread and I 'v e no w ork to d o .' Child that I was, that cry taught m e the w orldw ide feeling that has ever boun d the oppressed together in a struggle against those w ho h old control over the lives and opportunities o f those who w ork for wages. T h a t feeling becam e a subconscious guiding impulse that in later years developed into the dom inating influence in shaping m y life ." Samuel Gompers, Seventy Years of Life and Labor, New York, E. P. Dutton & Co., Inc., reissued in 1943 (pp. 4- 5). 27 L a b o r ’s A im s in to th e N e w A d ju s t in g T e c h n o lo g y EDITOR’ S N OTE. — The following article is ex cerpted from an address presented at the Con ference on Labor and Science in a Changing W orldw hich was held by the Industrial Union Depa/rtment o f the American Federation o f Labor and Congress o f Industrial Organizations in Washington, D.C., on January 7-8, 1959. F illin g the D em an d for M anpow er W e a r e t r y i n g to prepare for the future in the light o f scientific, econom ic, and social forces that have already been set in m otion. W e know that these forces will m ake fundam ental changes in our personal, working, educational, and com m u nity life. T h e m ost obviou s o f these forces are atom ic energy, autom ation, rocketry, the exploration o f outer space, and the alm ost m iraculous break throughs that are being m ade in the N a tio n ’s chem ical, electronic, m etallurigical, and physics laboratories. C ontinued progress in all o f these fields is neces sary because in no other w a y will we be able to m eet the onrushing needs o f a population that is expanding as our natural resources are diminishing. I t is on ly because we can anticipate further ad vances in industrial and agricultural techn ology that w e can also face the future w ith confidence. L et m e state, for the record, that labor does n ot oppose technological change per se. W h at we do oppose is the inhuman manner in w hich the new techn ology is som etim es applied. A n d since the mission o f the labor m ovem ent is to protect the econ om ic welfare o f Am erican wage earners, we do n o t intend to ignore the short run ju st because everyone m a y be better off in the long run. T h e first thing to rem em ber is that it takes m an pow er to open a frontier. This was true in A m erica in the past— when our frontiers were physical— and it will be true in the future— when our frontiers are scientific. F e b ru a ry 1959 28 This need for m anpow er will be activated b y catalytic agents that are already apparent. T h e y include, first, a grow th m ushroom ing so fantasti cally that, within 21 years, A m erica will have to be able to feed, clothe, house, transport, educate, and otherwise serve the social, cultural, and econ om ic needs o f 100 m illion m ore people than we have right now. A second factor is the increasing emphasis on industrial research and developm ent. T h e search for new m ethods, machines, processes, and m a terials affects every phase o f industry. T od a y, public and private agencies are spending m ore than $10 billion a year on research. O n ly 6 years ago, th ey spent about half that am ount. These research and developm ent program s need n ot on ly college-trained physicists, chemists, engi neers, draftsmen, m athem aticians, astronomers, and geologists but, for each o f these, a corps o f skilled craftsmen capable o f translating ideas into action. T h e emphasis on research and developm ent leads, naturally enough, to a third catalytic agent in the econ om y, nam ely: capital expenditures and the rise o f new industries based on the new dis coveries that are pouring ou t o f the N a tion ’s laboratories. M illions o f people are em ployed in job s and in industries tod a y that hardly existed on ly one generation back. T w en ty-five years ago, for example, there were fewer than 100 in dustrial research laboratories in the U nited States. T o d a y there are m ore than 4,000— em ploying at least a half m illion people. T w en ty years ago, nuclear fission was an abstract theory. T od a y , m ore than 120,000 workers— o f all types— are em p loyed in the production and application o f nuclear products. O n ly 5 years ago, inter continental missiles and earth satellites were little m ore than science fiction. T o d a y , the num ber o f technicians who are helping to probe the secrets o f outer space can on ly be guessed at. A ll o f these factors directly affect the m anpower needs o f the new scientific era. A n d though it is apparent that the opening o f the new frontiers o f space and science will create— rather than diminish— the need for m anpower, it is ju st as apparent that future m anpow er requirem ents are going to be qualitative rather than quantitative. T h e d a y o f the unskilled and the semiskilled worker in industry— o f the nut-tightener and the bolt-fastener— is alm ost over. This process has already begun. B u t the new technology will n ot destroy the value o f hum an skills; it is going to raise skill require ments— and dem and m ore o f them. A n d it is at this p oin t that we can begin to get pessimistic. For, in addition to the fa ct that we d o n o t have enough skilled workers to m eet the present require ments o f industry, is the even m ore frightening fact that— at our present rate o f progress— we appear to be going backw ard instead o f forward. L e t me pinpoint this problem . R ig h t now, there are abou t 9 m illion skilled workers in the U nited States. A n d when I talk about skilled workers, I mean the journeym en who can read and follow blueprints— w ho can build, install, control, m ain tain, and repair a machine or an electronics system. I mean tool makers, die sinkers, machinists, mechanics, repairmen, electronic technicians, m aintenance men, m achine-tool operators, sheetm etal workers, instrum entation experts, welders, patternmakers, electricians, and others in similar journeym an classifications. T h e 9 m illion workers with these kinds o f profi ciencies— along w ith som e 5 m illion professional and scientific personnel— have been called the “ k ey ” to A m erica's industrial production. B ut, 250,000 o f these skilled workers die or retire, or otherwise leave the labor force every year— and we are, at this time, replacing on ly 100,000 o f them through apprenticeships, form al on -th e-job training, and im m igration. This means that w e are currently running up a skilled m an pow er deficit o f 150,000 workers a year. In the next few years, we are going to com e face to face with a really serious crisis in m anpower— a crisis that will have had its origin in the low depression birthrates o f the 1930's. T h e U .S. D epartm ent o f L a bor estimates that b y 1965, we are going to need 137 professional and technical m en, 122 managers and officials, 127 clerical and sales people, and 122 skilled craftsmen fo r every 100 we have today. A n d here is where w e get hooked on the horns o f a national dilemma. A lthough our population will increase b y 18 m illion people b y 1965, the greatest proportion o f this increase will com e in the age groups that are 45 and over or under 25 years o f age. A ccord in g to present 29 estimates, we are n ot going to have any increase in the num ber o f men who are in w hat the D e partm ent o f L a b or calls the “ prim e” w orking ages between 25 and 44. This gradual seeping aw ay o f the N ation 's skilled w ork force— if allowed to continue— threatens m ore than the living standards o f our fast-grow ing population. M o re is at stake here than mere creature com forts. W h at is really threatened is our security and safety as a free people. F or m an y years, w e discounted the possibility that the Russians could ever m atch us industrially. W e assumed that because com m unism was in herently vicious in its lack o f regard fo r human life and individual dignity, it m ust also be inherently incapable o f m obilizing an effective w ork force. W ell, n ow we kn ow differently. As y o u m a y recall, the econ om ic schedule o f the Russian G o v ernment provides for the highest rate o f per capita production in E urope b y 1965— and in the w orld b y 1970. A lthough som e experts d ou b t the ability o f the Russian econ om y to reach these goals, I feel that in view o f past accom plishm ents, it is safer to overestim ate than to underestimate future Russian potential. T h e challenge o f S oviet progress,, when added to our foreseeable problem s o f internal grow th, means that we m ust— n ot in 1 year, 3 years, or 5 years, b u t right now — begin to plan and im plem ent program s that will enlarge and strengthen this N ation 's corps o f skilled, scientific, professional, and technical m anpower. This means, first, that we m ust m ake the fullest possible use o f all our m anpow er— and that, o f course, includes our wom anpow er. In fact, as machines continue to take over the heavier job s in industry, those rem aining can— in m ost cases— be perform ed as easily b y wom en as b y men. A n d also while the su pply o f men in the prim e working ages will, as w e have seen, remain stationary over the next few years, the num ber o f wom en in this age group— and in the labor force— will continue to grow . Thus, the skills and aptitudes o f wom en m ust be m ore fu lly developed in the future than th ey have in the past. Second, it means th at w e can n o longer afford to indulge in senseless em otional prejudices— that w e m ust rem ove all barriers to the training and em ploym ent o f m inority groups. T hird, w e must m ake m ore efficient use o f the millions o f m en and w om en 45 b u t under 65 years o f age. A n d, fourth, w e m ust accent the abilities rather than the disabilities o f the estim ated 2 m illion men and w om en w ho have suffered serious physical handicaps. T o tap all o f these currently undeveloped reser voirs o f skill, w e m a y have to am end and enlarge m uch o f our State and Federal legislation relating to w orkm en’s com pensation, rehabilitation, vo cational retraining, and discrim ination based on age and race. A nd, quite frankly, w e m a y also have to m od ify pension provisions in collective bargaining con tracts where, and if, th ey discourage the em ploy m ent o f older workers. I am not, o f course, sug gesting that w e should weaken these provisions. Quite the con trary; I am advocatin g an extension o f the funding principle, and the strengthening o f procedures that allow workers to transfer pension rights when th ey go from one com pa n y to another. B u t even if w e are successful in stretching our available labor supply b y all these m ethods, we will n ot have solved our basic problem . F or, in terms o f num bers alone, the C om m unist orb it has a staggering population advantage that w e can never h ope to overcom e. I don ’t w ant to get to o deeply in volved in the questions that con fron t education tod ay, bu t I do w ant to state m y opinion that the tim e has com e when w e m ust reintroduce discipline, hard work, and high standards o f excellence into all levels o f the school system. A s E li G inzberg has pointed out, a large prop or tion o f our you n g people are severely handicapped when th ey leave school and enter industry because th ey have n ot mastered the w ritten and spoken w ord— and because th ey have no understanding o f basic m athem atics. These fundam entals are im portant because w e can n o longer lim it jo b train ing to the requirements o f a specific jo b . A s our techn ology changes, the con ten t o f industrial jo b classifications will also change. This means that workers will have to be in creasingly flexible, and that vocation al training will have to b e grounded m ore firm ly on the funda mentals o f m athem atics, physics, engineering, and 30 electronics. F o r it is understanding o f funda m entals that gives a wbrker flexibility, that makes it possible for him to change, and take on new skills as his jo b changes or as it requires new skills. T h e sources o f su pply o f skilled labor also need reevaiuation, and, in som e areas, vast expansion. O ur standards and program s o f apprenticeship are good , I think, as far as th ey go, b u t unfortunately th ey are n ot reaching enough industrial trainees. Som e people claim this is because our you n g p eo ple have a w hite-collar com plex and d on ’t w ant to enter form al training that prepares them for bluecollar job s, n o m atter h ow skilled or well paid th ey m a y be. Industry, as a whole, seems to b e aware o f the value and need for a skilled lab or force, b u t when we get dow n to the individual em ployer, w e find that he either depends upon the hiring o f w ork ers that som eone else has trained— or, if absolutely necessary, sets up lim ited program s designed to m eet his ow n im m ediate requirements. A ccord in g to the latest figures for 1958, we have approxim ately 178,000 you n g people in train ing that meets the standards o f the Federal B ureau o f A pprenticeship. B ecause o f the reces sion, that is several thousand fewer than we had in 1956 or 1957. A n d it appears to b e far fewer than the num ber o f workers w h o are being trained in industrial skills in R ussia tod ay . R ecen tly, for example, the Soviets claim ed to have trained 7% m illion you n g workers as skilled hands in 500 nar row ly specialized trades during th e past 15 years. In 1955 alone, th ey turned ou t 92,000 engineering technicians— w hich is 7 times as m any as w e trained during the same year. There is som e question as to the authenticity or com parability o f these statistics, b u t in the face o f the realities o f com m unism , here again I think it is safer to overestim ate than to underestim ate the caliber o f the S oviet w ork force. I am n ot suggesting, o f course, that w e wish to c o p y their system . B u t at the sam e tim e, I think we cannot ignore the spectacular results th ey have achieved in their technical schools, the so-called “ technicum s.” I t is a sad fact that in m an y o f our ow n urban school systems, the trade schools— the technical high schools— have b ecom e the dum ping place for the slow learners, the discipline problem s, and, in general, the you n g people the other high schools d on 't want. A s a result, trade schools in m an y places sym bolize educational failure— rather than educational achievem ent. B y w a y o f contrast, Russian you th com petes strenuously for the privilege o f being selected for training in the technicum s. A n d n ot on ly are m ost o f the students paid— on the basis o f grades— while learning, b u t when the shortages o f m anpow er are anticipated in any given craft, the m onetary re wards for learning th at craft are increased. N o w whether or n ot we like the Russian system o f education— and there are certainly m an y ele m ents o f rigidity and com pulsion w e do n ot like— we m ust adm it that th ey have at least taken posi tive and affirmative action to m eet their present and future m anpow er requirements. I t is time for us to do likewise. A s a starting point, I w ould suggest that the D epartm en t o f D efense add apprenticeship train ing provisos to every procurem ent contract. M a n y com panies that subsist alm ost entirely on defense contracts— and this includes som e o f the biggest aircraft producers— are tod a y recruiting (a polite w ord fo r “ pirating” ) the skilled workers th ey need from other industries and are doing noth in g to replenish the N ation 's p ool o f skilled m anpower. W h en the Bureau o f Apprenticeship surveyed the aircraft industry 2 years ago, it fou n d that 70 percent o f the com panies studied had no facilities for training apprentices. A n d these com panies w ithout apprenticeship program s, incidentally, em ployed m ore than half o f the w ork force in the aircraft industry. T h e International A ssociation o f M achinists and the U nited A u tom obile W orkers tried to correct this disgraceful situation during the past year b y putting the establishment o f join t ap prenticeship program s on the list o f n oneconom ic dem ands that were drawn up fo r the aircraft negotiations in 1958. T h e results were negative. N o t one single new apprenticeship clause was negotiated. A n d — let us face facts— this is n ot the kind o f an issue for w hich we can expect the m em bership to go ou t on strike. So we had to drop it, even though we recognize that the supply and quality o f skilled workers in this industry m a y one day m ean the difference betw een v icto ry o r defeat in our struggle w ith the Soviet Union. 31 T h e lesson o f the 1958 negotiations in the air craft industry is that organized labor cannot proceed unilaterally tow ard a solution o f this p rob lem. I t appears rather that the initiative m ust rest w ith the agency that controls procurem ent. A n d if it will seize that initiative, we will m ost certainly support it every step o f the w ay. A noth er source o f skilled labor supply that should be m ore fu lly explored is, o f course, the technical institutes and jun ior colleges. In recent years, there has been encouraging grow th in the num ber o f such institutions equipped to train technicians for w ork in such fields as m edicine, electronics, and engineering. B u t this grow th has n ot com e fast enough to keep pace w ith even our present needs. Therefore, I w ould also suggest Federal grants-in-aid— and technical scholar ships— to stim ulate further and faster grow th o f this type o f semiprofessional training. I f we, as a N ation, can afford to subsidize scores o f private profit groups, we should also be able to subsidize our m ost precious national resource: the skill o f our w ork force. F ou r years ago, the N ational M anpow er C ouncil stated that “ T h e N ation cannot afford to w ait until crises com pel us to consider h ow to im prove and increase skills. T h e N ation 's welfare requires that long-range program s for developm ent o f an adequate supply o f skilled m anpow er b e in stituted n o w .” T h a t statem ent was m ade in a spirit o f urgency. T o d a y that urgency has been com pounded. I think the tim e has com e when we m ust try again to impress on otir political leaders and our industrial com patriots the fact that strategic hum an skills— unlike strategic metals— cannot be stockpiled or taken ou t o f cold storage when th ey are needed. T od a y, the organized labor m ovem ent has m any points in its program fo r the building o f a better A m erica. Som e ob jectives are long range— som e are short range— b u t few are m ore im portant than getting the right range on this problem o f training and preserving the skills o f the N ation 's w ork force. — A . J. H a y e s International Association of Machinists L a b o r Im p lic a t io n s o f P e a c e fu l U s e s A to m ic o f E n e rg y J o h n I. Sa k s * T he a p p l ic a t io n of a t o m ic e n e r g y t e c h n o lo g y t o in d u s t r y a ffe c t s t h e w o r k f o r c e a t m a n y p o in t s in r e g a r d t o j o b o p p o r t u n it ie s , e m p lo y m e n t , a n d t r a in in g ; s a f e t y a n d h e a lt h p r o t e c t i o n ; w o r k m e n 's c o m p e n s a t io n ; r e la t io n s . w o r k in g c o n d i t io n s ; and la b o r I m p lic a t i o n s in th e s e a r e a s o f in t e r e s t r e fle c t t h e n e w n e s s o f t h e t e c h n o lo g y , th e u n lim ited to research, design, and developm ent. A to m ic activities fo r the n ext several years will consequently be dom inated b y the existing establishm ents producing a tom ic fuels and radio a ctive source materials, instrum entation, con trols, and equipm ent. A to m ic fuels produ ction and basic research and developm en t essentially for m ilitary purposes are G overnm ent-ow ned, con tractor-operated activities. T h e p rivately de veloped ore extraction and a tom ic com ponents industries are quite small and substantially dependent on A to m ic E n ergy C om m ission (A E C ) program expenditures. T h e short-run effects o f atom ic developm en t on the N ation 's econ om ic structure and w ork force should consequently b e m inor. B y the end o f the next decade, how ever, anticipated technolog ical breakthroughs will u n dou btedly advan ce the developm ent o f nuclear pow er, m aritim e p ro pulsion, fo o d preservation and radiation chem istry, and possible other uses, m aking them com petitive betw een 1970 and 1980. c e r t a in t y o f it s p la c e in t h e e s t a b lis h e d in d u s tr ia l o r d e r , a n d t h e u n iq u e c h a r a c t e r is t ic s o f a t o m ic e n e r g y a p p lie d t o p e a c e fu l p u r p o s e s . B ackground T h e fissioning o f the atom makes possible great advances in the conquest o f disease, increases in the w orld 's fo o d supply, the provision o f cheap pow er, and the application o f a tom ic heat and radiation energy for technical advances in the industrial arts. T h e greatest potential gain is in the m anifold increase o f fuel reserves. D u rin g the past hundred years, rapid industrialization, trem endous grow th in population, and rises in living standards have led to the rapid depletion o f fossil fuel supplies. Fissionable fuels assure the continuance o f our m odern civilization, w hich is based essentially on the consum ption o f vast am ounts o f energy. T h e m a jor areas o f peaceful nuclear applications lie in (1) atom ic pow er; (2) atom ic propulsion; (3) radiation involvin g (a) isotopes in industry, agriculture, and m edicine, (b) fo o d preservation, and (c)rplastics; and (4) space and process heating. E xcep t for the expanding uses o f radioisotopes in industry, agriculture, and m edicine, and pilot dem onstrations o f nuclear ship propulsion, the peaceful applications program s are substantially A u g u st 1957 Economic Implications. T h e tim ing and extent o f expanded peaceful uses w ill largely be deter m ined b y the effectiveness o f the atom techn ology's challenge to current com petitive processes for which th ey m a y substitute. Large financial investm ents and years o f developm ental effort will be required. Success w ill depend on the size and quality o f the technical research and develop m ent program s through w hich the scientific breakthroughs (and subsequent econ om ic appli cations) m ust com e. Large outlays o f technical m anpow er and m on ey for this purpose will conse quently n ot be as profitable in the short run as returns from com parable investm ents in established processes. In the m eantim e, traditional industries will grow and continue to advance technologically. W ith few exceptions, raw and fabricated m aterials used in atom ic applications are generally identical w ith those used in conventional industries. H ence, increased dem ands for atom ic uses, where these are n ot sim ply replacem ents for conventional industry requirements, m a y be considered as norm al grow th for these suppliers. M a n y m anu*0f the Division of Labor Market and Manpower Studies, Bureau of Employment Security, and member of the Atomic Energy Study Group of the U. 8. Department of Labor which was responsible:for the report Labor Implications of Atomic Energy, published in July 1956. 32 facturers o f h eavy industrial equipm ent and sev eral large-scale chem ical producers are actively in v olv ed in peaceful atom ic research and develop m ent and p rototy p e experiments. A significant volum e o f a tom ic applications should consequently result on ly in m odified shifts in p rod u ct emphasis for these organizations. R adiation Safety Protection R adiation hazards and safety and health p ro tection are am ong the m ost significant im plications fo r the w ork force in the peaceful uses o f atom ic energy. These in v olv e com plex and som ew hat indeterm inate standards for those w orking directly in exposure areas, for other workers indirectly exposed at the place o f em ploym ent, and fo r the general public. R elated also to w orker safety protection are issues o f w orkm en's com pensation in the event o f radiation injury. be no m ore dangerous than w orking in oth er industrial processes where safety measures m ust be p rop erly maintained. A lth ou gh relatively few persons currently w ork in radioactive or “ h o t” areas in atom ic installa tions and research laboratories, radiation exposure is possible in the course o f routine plant operations. U nforeseen exposure m a y arise because o f inade quate m onitoring or defects in radiation p rotective measures, through accidents to equipm ent o r im proper precautions in the storage or transpor tation o f containers o f radioactive materials. R adiation contam ination o f outside areas, som e times miles aw ay from the atom ic installation, can develop through the pollution o f atm ospheric dusts, w ater supply, or sewage resulting from the discharge o f industrial waste materials. T h e developm ent and application o f adequate safety and health standards are consequently o f m a jor concern to Federal and State G overnm ents and to labor and managem ent. Problems oj Radiation Exposure . R adiation, in visible and undetectable to the senses, is a unique industrial hazard. R adiation can penetrate m at ter in different degrees according to whether alpha, beta, gam m a, or neutron particles or rays are absorbed. In som e instances, h eavy lead shielding or several feet o f concrete are n ot suffi cient p rotection against radiation. H ence, spe cial instrum entation, controls, and m onitoring, cou pled w ith basic radiation safety indoctrination and jo b safety instruction, are necessary to guard the w orker against this insidious danger. T h e effects o f radiation exposure are cum ula tive. D osages safe at any one tim e m a y prove extrem ely injurious if repeated sufficiently often. Diseases such as anemia, leukemia, bone cancer, m alignant tumors, and genetic damage, thus induced m a y n ot becom e evident for m an y years or even decades. A m ong other determ inants o f the specific degree o f inju ry which an individual m a y suffer are included the quantities and types o f radiation absorbed, the length o f time o f absorp tion, the relative am ounts o f radiation affecting different parts o f the b od y , and the radiosensitivity o f the individual. U nderstanding the hazards o f radiation expo sure and the use o f safety precautions are conse q uently basic to the widespread use o f peaceful atom ic energy. On the other hand, w ith the proper safeguards, w orking around radiation need A E G Safety Programs. T h e A tom ic E n ergy C o m mission has always placed prim ary emphasis on radiation safety in all atom ic program d evelop m ent phases. These include the evaluation from the poin t o f safety o f the design o f reactors, equip m ent, and com pon en ts; the procedures for chem i cal processing o f fuels; the planning and scheduling o f plant operations; the m edical program s for em ployees; the selection and training o f w orkers; the use o f p rotective clothing, including respira tory m asks; the m ethods o f washing; and the location o f eating and sm oking areas. U nder the 1954 A tom ic E n ergy A ct, the A E C has responsibility for setting safety standards to protect workers and the general public from haz ards arising ou t o f its operations or products originating therefrom . I t m a y draw on govern m ental or other resources for carrying ou t this responsibility. T h e A E C has adopted exposure standards, established b y the N ational C om m ittee on R adiation P rotection and M easurem ent, as io permissible levels o f exposure to external radiation and also as to concentrations, in w ater or air, o f radioactive materials w hich m a y be ingested or inhaled. These standards have been progressively raised, i. e., to reduce permissible exposure limits, as m ore advanced data have been accum ulated. F or workers in atom ic installations, the permissible exposure dosage is generally less than that received 33 from natural radioactive sources in the earth and from cosm ic rays. F o r the general public, levels are set at about one-tenth o f industrial levels. T h e A E C develops cooperatively w ith its con tractors appropriate procedures and instrumen tation to assure continuous con form ity to its adopted safety standards and to m aintain records o f radiation safety activity. F ew workers in the contractor-operated installations are actually al low ed to reach the authorized limits, and for workers as a whole, radiation exposure falls well below the set standards. E arly in 1957, the A E C issued its revised “ Standards for P rotection A gainst R ad ia tion ” w hich are applicable to the activities o f its licen sees. T o assure con form ity to adopted standards, all licensees for the construction and operation o f nuclear installations or for the use o f licensed materials are su bject to periodic G overnm ent inspection b y the A E C ’s D ivision o f Inspection. T h e basic responsibility for adherence to the A E C safety standards, however, rests w ith the licensee whose operations m ay be suspended or revoked fo r nonadherence. A b ou t 4,000 licenses had been issued to users o f radioactive materials as o f M a rch 1957, and the num ber is increasing b y abou t 15 percent a year. M ore than 1,700 o f a total em ploym ent o f 100,000 production and research workers in plants and laboratories o f the A E C or its contractors were engaged in radiation protection w ork at the end o f 1956. Specialized personnel num bered 1,060, including physicists, chemists, engineers, m eteorologists, radiobiologists, and m onitors, and supporting technicians and clerical staff num bered 695. I t thus appears that A E C contractors have, on the average, been detailing between 1 and 2 percent o f their total personnel to carry ou t A E C protection standards. T h e results o f the safety measures are reflected in the excellent record since 1945 o f G overnm entcon tractor operations. B etw een A ugust 1945 and J u ly 1956, on ly 16 radiation accidents involving 69 individual exposures were reported. These accidents resulted in 2 deaths, 1 in 1945 and 1 in 1The unit of measure of potential damage to man and mammals by radia tion and generally equivalent to that produced by 1roentgen of X-ray. *Report of the Atomic Energy Committee of the International Association of Industrial Accident Boards and Commissions, 1956, p. 7; seealso Biological Effects of Atomic Radiation, Summary Reports (Washington, National Academy of Sciences, 1956), p. 35. *Atomic Energy Commission, 21st Semi-Annual Report, January 1957, p. 130. 3h 1946, and 19 skin injuries. M o s t o f the other exposures were com paratively m inor. In 8 o f the 16 cases, on ly 1 person was involved. T h e largest single accident involved 28 servicem en w ho re ceived an unexpected concentration o f fallout after a 1954 w eapons’ test. A ccord in g to con tractor reports to A E C , m ore than 99 percent o f nearly 200,000 workers em ployed during the 9year period 1947-55 were exposed to less than 5 rem ,1 or less than one-third o f the present per missible exposure lim it o f 15 rem a year. Atomic Safety Protection in the Private Sector. T h e outstanding record o f accident prevention in atom ic installations is attributable to the precau tions observed b y the A E C in an uncharted field and the revision o f safety limits m ade in the light o f its experience. I t also stems from the fa ct that A E C con tractors’ safety costs are paid for under G overnm ent contract. H ow ever, safety-protec tion cost becom es a v ery real problem w ith the prospective large-scale extension o f peaceful applications to private, com petitive industrial processes. T h e character o f safety supervision in the tran sition to peacetim e operation m a y suffer because personnel in private establishments m ay be less familiar and n ot as alert in dealing with radiation hazards and because costs in a com petitive situa tion m ay b e a controlling factor. T h e conse quence o f inadequate protection because o f cost or carelessness has been indicated b y the history o f m edical X -r a y uses. A s a result o f inadequate understanding and lack o f effective protective measures over a period o f decades, the life expect ancy o f roentgenologists has been shown to aver age several years less than that o f other m edical practitioners.2 Federal-State Safety Program Relationships. The announced p o licy o f the A E C in regard to the use o f licensed materials is to “ observe the traditional relationship betw een the State agencies and private industry on other types o f safety m atters.” 3 One o f the m ethods used b y the Com m ission to effec tuate this p olicy is to invite the participation o f officials o f interested local and State agencies in the inspection o f atom ic installations b y A E C field inspectors. T h e A E C thus hopes to assist in training a b o d y o f com petent technical inspection personnel. T h e States are also notified when new licenses for the use o f materials are issued to establishments or institutions within their borders. In the case o f licensed utilization facilities (cur rently lim ited to nuclear reactors), the A E C inspects all stages o f construction, the testing o f equipm ent, preoperational test runs, and subse quent startup and operations. In 1955, the A E C established a 12-member advisory com m ittee of State officials from health, labor, and legal departm ents. T h e com m ittee m eets about twice a year to discuss such matters as the licensing program , regulations prescribing adequate radiation protection standards, or the need for training local officials in radiological health protection. Since States have the police pow er to regulate intrastate health and safety matters, the pos sibilities o f conflict in approach and application o f radiation safety standards as com pared to the A E C program m ay exist. T h e constitutionality o f State regulation in the atom ic energy area was left som ewhat in d ou b t under the A tom ic E nergy A c t o f 1954. Som e types o f State and local a ction m ay be possible even where the A E C exercises its authority under the act. Further m ore, the States alone have responsibility for establishing safety standards for radiological hazards grow ing ou t o f the use o f X -r a y machines, radium , and radioisotopes produced b y particle accelerators (as distinct from those obtained through fission sources). Th e need for a m ore adequate safety-standards program is underscored b y the fast expanding area o f uses,4 the lim ited staff for inspection b y the A E C , and the present scant technical facilities o f State agencies. The on ly alternative at this tim e is the increasing delegation o f safety re sponsibility to licensees. T h e review procedures under the present A E C regulations can lead to the m odification or suspension o f licenses in the event o f failure to observe regulations, bu t on ly after dam age is done.5 Workmen’s Compensation. Special w orkm en’s com pensation issues grow ou t o f the unique factors o f nuclear radiation. State laws in this field are generally inadequate. The m ajor deficiencies in State w orkm en’s com pensation provisions are the lack o f full coverage o f occupational diseases, lim itations on the tim e period allowed for filing claims for benefits, and the inadequacy o f p ro 35 visions for m edical treatment.® T h e com plicated legal question o f fixing liability in the event o f radiation injuries which m a y appear several years subsequent to separation from atom ic energy em ploym ent is still to be resolved. M anpow er Characteristics and Training T h e scope and character o f m anpow er and training problem s in the atom ic field are also o f significance in considering labor im plications o f atom ic energy. E m ploym ent in all phases o f atom ic energy a ctivity in the spring o f 1957 totaled som ething over 150,000. A b o u t 117,000 workers were em ployed b y the A tom ic E n ergy C om m ission and its operations and construction contractors— 103,000 in operations and over 14,000 in construction. (See table 1.) R ou gh estim ates o f the balance were as follow s: uranium mining, ore reduction, and refining mills, 10,000; research and developm ent financed b y private industry, universities, and foundations, 3,000 to 5,000; design, m anufacture, and installation o f reactors, vessels, com ponents, and auxiliary equipm ent, 15,000 to 20,000; instrum entation and isotop ic devices, 4,000 to 6,000; and miscellaneous, 3,000 to 5,000. AEC-Contraetor Employment. T ota l em ploym ent b y the A tom ic E nergy Com m ission and its con tractors increased approxim ately 10 percent between D ecem ber 1955 and M a rch 1957, b u t was still m ore than 20 percent below that o f June 1952 when construction a ctivity was at its peak. In M arch 1957, the bulk o f em ploym ent was con centrated in the production and refinem ent o f atom ic fuels used predom inantly for m ilitary purposes and G overnm ent-controlled research and developm ent operations. T h a t type o f em ploym ent increased 1% times between 1949 and 1957, whereas construction em ploym ent, w hich increased about 5 times between 1949 and 1952, was approxim ately the same in 1957 as it was in 1949. These trends are indicative o f the ex pansion o f atom ic facilities. W ith the recent com pletion o f new m ajor A E C production instal lations at Savannah R iver, S. C ., Paducah, K y ., 4 1957 H earin gs before th e [Congressional] J oint C o m m itte e on A to m ic E n ergy, P t. I , Sec. 202, S ta tu to ry H earings, p . 101. * A to m ic E n e rgy C om m issio n , op . c it., p . 129. • See W o r k m e n ’ s C om p en satio n and R a d iation H azard s (in M o n t h ly L ab or R e v ie w , A p ril 1957, p p . 455-459). and Portsm outh, Ohio, and very large additions to the O ak R idge, Tenn., and H anford, W ash., facihties, it is reasonable to expect that operations em ploym ent will expand still further. Based on the general nature o f the processes and the types o f equipm ent used, the structure and characteristics o f the A E C -con tractor w ork force are m ost com parable to those in the inorganic chem icals and the petroleum and coal products industries. T h e bulk o f the personnel consist o f skilled and semiskUled chem ical-process operators, service and m aintenance m echanics, and a sig nificant proportion o f technical and managerial staff. A tom ic installations, how ever, also em ploy large num bers o f guards, because o f the relation ship of these plants to national security, and significant num bers o f atom ic health and safety personnel for p rotection against radiation hazards. M ost o f an atom ic plan t’s personnel are in experienced and loca lly recruited at the tim e o f hiring. W here no apprenticeable craft skill is involved, p rodu ction and service workers are routinely trained on the jo b . T h e norm al largescale m anufacturing a ctiv ity characteristics which the a tom ic fuels and byprod u cts processing plants appear to have acquired, are reflected in the hours, earnings, and turnover statistics o f the A E C -con tractor operations. A tom ic energy in stallations com pare very favorab ly w ith all m an ufacturing and with industrial inorganic chemicals at all points and on ly fall slightly below the p rod ucts o f petroleum and coal where stable and profit T a b l e able oil refinery activities are a dom inant factor. (See table 2.) A E G Installations W ork Force Experience. The, routinization o f atom ic produ ction operations is borne out b y the experience at the four A E C installations at Oak R id ge, Tenn., and Paducah, K y . T h e U nion Carbide N uclear C orp., the o p erating contractor, assumed responsibility in 1943 at the Oak R id ge gaseous diffusion plant (O R G D P ), in 1947 at a second O ak R id ge AJant (Y -1 2 , electrochem ical b yprod u cts), in 1948 at the Oak R id ge N ational L a boratory (O R N L ), and in 1950 at the Paducah gaseous diffusion plant (P G D P ). E m ploym ent at the Oak R id ge plants showed a consistent dow ntrend from 1947 through 1950, but increased significantly from 1951 to 1954 as large additions were m ade to existing facilities. M odifications in em ploym ent levels in 1955 and 1956 are presum ably a result o f m ore effective use o f the new facilities. E m ploym ent at Paducah has continued substantially unchanged since norm al produ ction a ctivity levels were reached in 1952. (See table 3.) H ou rly paid craftsmen, production, and m ainte nance workers in the 3 produ ction plants m ade up betw een 57 and 70 percent o f th o payroll in D ecem ber 1956. (See table 4.) Large numbers o f security guards and clerical and service per sonnel m ade up the w eekly paid group o f workers. A t the O R N L , the different distribution reflects 1.— E m p lo y m e n t o f A to m ic E n e rg y C o m m issio n a n d contractors , 1 9 4 9 -6 7 [In thousands] Contractors’ em p loym en t D a te A ll e m p lo y m ent A to m ic E n e rgy C om m ission em p lo y m en t Operations Construction T o ta l T o ta l 1857: M a r c h ............................................................... 1956: D e ce m b er......................................... ............. Jun e...................................... ............................ 1955: D e ce m b er....................................................... Jun e................................................................... 1954: D e ce m b e r — ............................ ..................... J un e....................... ........................................... 1953: D e ce m b er....................................................... J u n e _ _ -............................................................. 1952: D e ce m b er_________ ____________________ Jun e____________________________________ 1951: D e ce m b er___________ ____ __ _________ J un e____________________________________ 1950: D e ce m b er____________ ________________ J un e____________________________________ 1949: Oftfiftmhfir 117.0 115.6 110.2 106.1 112.6 130.7 141.9 146.5 148.8 142.8 149.4 124.2 99 .1 73 .3 63 .7 5 6 .6 110.4 109.0 103.5 99 .9 106.5 124.8 135.8 140.2 141.9 136.0 142.7 118.4 93 .5 6 8 .2 5 8 .8 5 1 .8 6 .6 6 .6 6 .6 6 .2 6 .0 5 .9 6 .1 6 .3 6 .9 6 .8 6 .7 5 .8 5 .6 5 .1 4 .9 4 .8 N o t e : Because of rounding, su m s of in divid u al item s do n ot necessarily eq u al totals. 36 9 6 .2 9 3 .8 9 0 .2 8 5 .7 82 .9 78 .1 73 .3 71 .7 7 1 .8 6 3 .4 58.1 5 2 .4 4 7 .8 42.1 39.1 3 7 .2 P roduction Research and d evelop m en t 50 .9 50 .0 49 .7 48 .7 4 8 .0 4 4 .2 39 .5 3 8 .7 37 .1 S o u r c e : A to m ic E n e rg y C om m ission, 3 9 .4 3 7 .9 3 4 .2 3 0 .6 2 8 .8 2 7 .6 2 7 .6 2 6 .9 2 8 .8 O ther 5 .9 5 .9 6 .4 6 .3 6 .1 6 .3 6 .3 6 .1 5 .9 14 .2 15 .2 13 .3 14 .2 2 3 .6 46 .7 6 2 .5 68 .5 70 .1 7 2 .6 8 4 .6 6 6 .0 45 .7 26 .1 19.7 14 .6 T 2 . — H o u r s , gross e a rn in g s , a n d lab o r tu rn o ver rates o f p ro d u c tio n w orkers i n A to m ic E n e rg y C o m m is s io n a n d contractor establishm ents a n d selected in d u s trie s , F e b ru a ry and M a rc h 1957 and M a rc h 1956 m ajor personnel additions were m ade at the Oak R id ge plants after 1950 and Paducah began oper ations on ly in 1951, these average periods o f service poin t to a very considerable degree o f stability in em ploym ent. T h e apparently satisfactory character o f a tom ic installation w orking conditions is also reflected in part in the distances a large proportion o f the workers are willing to com m ute. Fifteen percent o f the O R G D P personnel, 9 percent o f those a t the Y -1 2 plant, 11 percent at O R N L , and 21 per cent at Paducah travel 20 miles or m ore each w ay. Fou r percent o f the workers at O R G D P com m u te 40 miles or m ore in each direction daily. A m a jor factor m a y be that these are b y far the largest sources o f w ell-paying jo b opportunities in the area and thus attract rural jo b seekers within a wide radius. A ccord in g to records o f exit interviews, volu n tary quits because o f transportation, housing dif ficulties, health problem s, or dissatisfaction with earnings, hours, or w orking conditions were negligible. T h e accident records at these atom ic installa tions are likewise illum inating in regard to safety as a consideration in expanding future atom ic in dustry em ploym ent. D uring 1956, there were n o fatalities or perm anent tota l disabilities in 3 o f the plants and on ly 2 such occurrences in the fourth. T otal accident frequency rates per m illion hours worked for the calendar year 1956 were: O R G D P , 1.72; Y -1 2 , 2.27; O R N L , 0.55; and Paducah, 1.87. a b l e In d u str y and date A E G an d contractors: M arch 1QS7 F ebru ary 1957 ___ _ M arch 195fl ___ _ A ll m anufacturing: M arc h 1957 .... T_ F ebru ary 1957 _ M a rc h 1956.......................................... In dustrial inorganic chem icals: M a rc h 1957_______________________ F c h m a r y 1957 M a rc h 1956.— .................................. P rod ucts of petroleum and coal: M a rc h 1957................................... .. F ebru ary 1957___________________ M a rc h 1955 A ver age w eekly hours Gross aver age hourly earn ings Gross A cces Sepa aver sion ration age rate— rate— w eekly earn P er 100 e m ings ployees 4 0 .5 4 0 .8 41 .1 $ 2 .52 2 .5 2 2 .4 2 $102.22 102.73 99.54 1 .6 1 .6 1 .6 1 .3 1 .2 1 .5 40.1 4 0 .2 4 0 .0 2.0 5 2.0 5 1.9 5 82.21 82.41 78 .78 2 .8 2 .8 3 .1 3 .3 3 .0 3 .6 4 0 .9 4 0 .9 41 .0 2 .3 9 2 .3 7 2 .2 8 97.75 96.93 93.48 1 .6 1 .5 1 .5 1 .9 1 .5 1 .6 4 0 .6 4 0 .8 4 1 .2 2 .5 8 2 .5 6 2 .5 2 104.75 104.45 103.82 .9 .9 .9 1 .1 .8 .7 S o u b c e : A to m ic E n e rg y C om m issio n an d B ureau of L ab or Statistics. the m uch larger emphasis on research and de velopm ent, with correspondingly increased p ro portions o f professional and technical staff. T h e num ber o f wom en em ployed was not significant. O f the 1,887 w om en em ployed, on ly 217 were p rodu ction workers. H ow ever, the lim ited em ploym ent o f w om en in basic atom ic p rodu ction and research activities— 12 percent o f the total job s in these 4 plants— com pared favorab ly with fem ale em ploym ent participation in industrial inorganic chemicals (8 percent) or products o f petroleum and coal (7 percent). Generally, w ork at basic atom ic installations does n ot appear to call for special aptitudes or unique industrial backgrounds except in research and developm ent and in som e limited specialized operations. This is indicated b y the recruitm ent experience and the worker educational achieve m ent level at the A E C -U n ion C arbide N uclear plants. N o difficulties were reported in obtaining local labor for basic produ ction operations at these semirural plant sites, nor in training them effec tively on the jo b despite a lack o f previous fa ctory experience. A t Paducah, 15 percent o f all em ployees had less than a high school education; at O R N L , 20 percent, at O R G D P , 40 percent, and at Y -1 2 , 42 percent. A t these latter 2 plants, over 20 percent had had on ly a grade school education or less. T h e weighted average length o f service at the end o f 1956 was 8.2 years at O R G D P , 6.7 at O R N L , 6.0 at Y -1 2 , and 4.5 at Paducah. Since New Atom ic Occupations. T h e character o f the m anpower requirem ents involved in atom ic reac tor construction and operations, in the reprocessT a b l e 3 .— E m p lo y m e n t trends at A E C - U n i o n N u c le a r contractor p la n ts , 1 9 4 7 -5 6 C a rb id e O ak R id ge plants D a te T o ta l D ecem b er 1 9 5 6 .. D ecem b er 1955. . D ecem b er 1 9 5 4 .. D ece m b er 1 9 5 3 .. D ecem b er 1 9 5 2 .. June 1952................ June 1951................ June 1950................ June 1949................ June 1948................ June 1947................ 14,068 14,282 14,959 13,729 12,770 12,572 10,850 8,078 8 ,2 30 9,7 69 10,266 Gaseous diffusion E lectro chemical b yp rodu cts 5,382 5,4 66 6,128 6,206 6,0 84 5,594 4,700 3,9 32 4,4 12 5,201 5,5 79 4,950 5,3 48 5,520 4,3 89 3,5 22 3,7 32 3,125 1,806 1,784 2,223 2,4 04 N a tio n a l L ab oratory 3,7 36 3,468 3,311 3,1 34 3,164 3,246 3,025 2,340 2,0 34 2,3 45 2,2 83 P ad ucah gaseous diffusion p lan t 1,761 1 ,7 55 1,6 8 0 1,7 92 1 ,5 63 »771 * E m p lo y m e n t as o f D ece m b er 1951. S o u b c e : U n io n C arbide N u clear C o r p ., tion^ R e p o rt, 1956. 37 E ig h th A n n u a l In d ustrial R e la ing o f fuels, in the uses o f radioactive isotopes, and in the m anufacture o f atom ic instrum entation, calls essentially for m odifications in existing skills. There are relatively few new occupational titles and these are associated predom inantly with technical research, design, and developm ent, as the nuclear physicist, and with radiation health protection where health physicist, radiation ana lyst, radiation m onitor, and decontam ination technician are identifiable. A t the operating level, there are the coolant tester, heliarc welder, and reactor operator. In-plant radiation safety measures are under the control o f specially trained health physicists w ho generally are also responsible for worker safety training and m onitoring o f the environm ent to assure adequate protection for the outside public. W ork er safety training includes indoc trination and education program s including health physics lectures, pam phlets, etc. T h e health physicist, an occupational specialty grow ing di rectly out o f atom ic safety requirements, has usu ally had postgraduate w ork in theoretical and applied physics. T h e radiation analyst, a subprofessional w ho works under th e health p h y sicists direction, is qualified to evaluate hazards and m ake rem edial recom m endations. H e in turn m a y supervise the radiation m onitor w ho perform s a m ore routine fun ction o f operating devices to measure the am ounts o f radioactivity which m ight be present in areas o f possible exposure. T h e m onitor m ay also function as part o f a decontam ination crew or com bine the m onitoring function w ith routine nonradiation protection activities. T h e decon tam ination technicians act to clean up an area after radiation leakage has raised the radiation level to a poin t where corrective safety measures m ust be taken to protect personnel and equip m ent. C oolan t testers are very few in num ber and are engaged solely on testing the effectiveness of liquid m etal coolants for use in certain typ es o f reactors. These workers are readily trained on the jo b . H eliarc welders, using an inert gas weld ing process on metals, are essential in the con struction o f reactors and auxiliary facilities. A l though large numbers m ay be needed on m ajor atom ic projects, ordinary welders with several days' instruction, and other workers w ith a very few weeks o f special training, can usually m eet nuclear T 4 . — D is tr ib u tio n o f e m p lo ym en t in A E C - U n io n C a rb id e N u c le a r contractor p la n ts , by tim e basis o f com p e n s a tio n a n d sex, D ecem ber 1 9 5 6 a b l e O ak R id ge p lants Ite m A ll p lan ts Gaseous diffusion E lectro chem ical byp ro du cts P ad ucah gaseous N a tio n a l diffusion L ab oratory p lant A ll w orkers........... 15,829 5,382 4,9 50 3,7 36 1,761 M e n ...................... Percent of to ta l............. W o m e n ............... P ercent of to ta l............. 13,942 4,6 93 4,4 54 3,1 84 1,611 88 1,887 87 689 90 496 85 552 91 150 12 13 10 15 9 8 ,5 90 3,0 59 3,425 1,0 30 1,0 76 54 57 70 27 61 3,2 69 1,164 662 1,147 296 21 22 13 31 17 3,9 70 1,1 59 863 1,559 389 25 21 17 42 22 H o u r ly p aid w orkers............... Percent of to ta l............. W e e k ly paid w orkers............... Percent o f to ta l............. M o n th ly paid w orkers............... Percent of to ta l............. S o u r c e : U n io n C arb ide N u clear C o r p ., E ig h th A n n u a l In d ustrial R e la tions R e p o rt, 1956. construction specifications. R e a cto r operators are licensed to operate the controls o f a reactor panel. This function, originally perform ed b y graduate engineers or scientists, has been progres sively downgraded so that high school graduates can be trained on the jo b and can qualify for A E C licenses. R ead ily trainable service or p ro duction occupations in atom ic activities which m a y take on greater significance, depending on the numbers and typ es o f reactors in use, are the reactor assembler and fuel-elem ent assembler. Graft Training Requirements. In general, prod u c tion and craft skill characteristics are identical w ith those foun d in related chem ical, m etalw orking, or the construction industries. C raft specifications are, how ever, far m ore exacting in the m anu facture, installation, and m aintenance o f m aterial and equipm ent su bject to possible radiation con tam ination, requiring far m ore precision w ork and the developm ent o f special m ethods for handling and w orking with atom ic materials and equipm ent. This is im perative to provide adequate shielding and leak-proof fittings and joints. E xisting craft practices consequently need reexam ination in the light o f these new circumstances. Plum bers, pipefitters, machinists, millwrights, boilerm akers, m achine-tool operators, electricians, and welders are especially affected b y this consider ation in atom ic reactor construction and operating 38 m aintenance. Such skill m odifications and their extension into new areas o f a ctiv ity call fo r certain changes in existing craft training. In the short run, m uch o f this training will be in-plant adapta tion o f the existing p ool o f skills to the m ore exact ing requirements. In the longer run, changes will be m ade in organized training program s, including expanded apprenticeship or com bined vocation al instruction and on -th e-job training under the supervision o f experienced craftsmen. Som e unions are reorganizing their apprentice ship training program s to take cognizance o f the types o f perform ance standards and w ork specifi cations required in the atom ic field. M illw right, pipefitter, and boilerm aker unions h ave obtained A E C access perm its to classified inform ation so as to stu dy the im pacts o f the new techn ology on their craft activities. Professional M anpower Problems. T h e principal m anpow er problem in atom ic energy developm ent is clearly the shortage o f professional skills.7 Trained engineers and scientists are needed in pure and applied atom ic research and developm ent and, to a lesser degree, in nuclear applications. T ech nical progress in peaceful applications is directly tied to the expansion in numbers of professionally trained personnel devoted to further research and developm ent. A ccordin g to the A E C , in Septem ber 1956, 19,000 engineers and scientists were em ployed am ong the 113,300 workers engaged in its a ctivi ties. E xcluding the 14,800 workers in contract construction, th ey represented approxim ately 19 percent o f operations, research, and developm ent em ploym ent o f the A E C contractors. In the spe cialized national atom ic research laboratories where the bulk o f the technical developm ental a ctivity is concentrated, about 30 percent o f the em ploym ent consisted o f professionally trained specialists. M ore than half o f all the technicians em ployed in the A E C program are chem ical or m echanical engineers. One-third are physical scientists, m ostly physicists and chemists. T h e rem aining one-sixth are biological, m edical, and other m iscel laneous scientists. This group o f professional workers is supported b y at least an equal num ber o f technical aids, research and laboratory assist ants', and other subprofessional personnel. 39 T h e atom ic energy industry needs a large, con tinuing su pply o f engineering and scientific grad uates w ho w ould custom arily acquire nuclear com petence on the jo b or through supplem entary graduate training courses. In the face o f national shortages and the keen com petition from all other areas in the econ om y which seek com parable types o f professionally trained personnel, satisfying this need constitutes a m ajor problem . Labor Needs o f Atom ic Peacetime Uses. Since pow er is prospectively the largest single peaceful application o f atom ic energy, its m anpow er requirements are o f particular interest. T h e A E C roughly estimates that 44,000 workers, including 2,300 engineers, w ould be needed to operate atom ic plants o f 175 m illion kilow atts cap acity.8 This figure is lim ited to the nuclear heat produ ction function. Th e m anpow er for the electricity generation and distribution operations w ould rem ain the same for both atom ic and con ventional typ e pow er plants. This estimate is generally regarded b y private pow er and equipm ent industry experts as being at least one-third too high, principally because it is based on a m anpow er staffing pattern used at an A E C reactor, designed and operated for entirely different (nonpow er) purposes. Further m ore, tl^ey m aintain that the introduction within the next 25 years o f the largest conceivable nuclear pow er program will n ot require the net addition o f even such m odified m anpow er esti mates. Regardless o f source, these estimates need to be offset b y the staff which w ould other wise have been em ployed in m odern, efficient, con ventional typ e plants for which atom ic produced heat will substitute. It is conceivable that with advanced nuclear design, m anpow er requirem ents m a y even be reduced further to some, lim ited degree. Isotopes in industry have n ot created any identifiable change in m anpow er requirements. Users o f isotop ic control and measuring devices in continuous process industries such as rubber, paper, and cigarette m anufacturing claim that th ey produce large dollar savings brought abou t b y increased efficiency o f operation through quality controls, and reduction o f wastage, b u t such 7 H earin gs, op . c it., p p . 1 2 ,1 3 , and 97. 8 R e p ort of th e M c K in n y P anel to th e [Congressional] Joint C o m m ittee on A to m ic E n e r g y , F ebru ary 1956, V o l. I I , p . 545. devices have n ot resulted in the technological dis placem ent o f currently em ployed workers. On the other hand, their use has n ot created additional m anpow er needs. T h e m anufacture, assem bly, and installation o f the essential atom ic instrum ents, gages, and other devices will create lim ited dem ands for additional scientific instrum ent makers, calibra tion technicians, lens and gage grinders, etc. T h e largest increase in this relatively small industry’s demands, how ever, will b e in the num ber o f semiskilled assemblers, w ho can be readily trained on the jo b . A tom ic E nergy and O rganized Labor Organized la b or’s oth er interests in atom ic energy in volve (1) conditions o f collective bargain ing, (2) interunion jurisdictional m atters, and (3) developm ent o f w orker and public understanding and acceptance o f industrial atom ic applications. Collective Bargaining . Certain aspects o f atom ic lab or relations are unique. N uclear industrial tech n ology em erged as a wartim e crash program com pletely dom inated b y national defense and security considerations w hich led the Federal G overnm ent to request the unions to refrain from organizing a ctivity and introducing collec tive bargaining procedures. O nly in 1946 did unions win representation rights at G overnm entow ned, contractor-operated atom ic installations. T h e threat o f a strike in 1948 at O ak R idge, Ten n ., led to the establishment b y the President o f the U nited States o f a lab or relations panel for the a tom ic energy installations.9 This panel w ith som e m odifications m ade in Septem ber 1953, and som e additional m inor changes in January 1957, m ay, w ith the consent o f the parties involved, exercise.jurisdiction over disputes w hich threaten to disrupt essential aspects o f the atom ic energy program . U nder the present operational p roce dures, unions and contractors at A E C installa tions are expected to negotiate on norm al aspects o f w orking relationships (that is, exclusive o f * See P an e l to H a n d le A to m ic E n e r g y P la n t D isp u te s (In M o n th ly L a b o r R e v ie w , Jun e 1949, p p . 661-662). w G eneral P o lic y S tatem en t of th e U . S . A to m ic E n e rg y C om m issio n R e la tiv e to C ontractor Personnel M a n a g em en t an d L a b o r R elation s, 1955. 11 P resid en t’s R e p ort, Proceedings to th e 46th A n n u a l C o n ve n tion of the M e ta l T rad es D e p a rtm e n t of th e A m erican Federation of L a b o r, N o v e m b e r 28,195 5, p p . 6 -7 . ko security m atters) and to m ake every effort at peaceful settlem ent o f disputes through collective bargaining and full use o f the Federal M ed ia tion and C onciliation Service. T h e panel’s special role is to aid in volu n tary settlem ent on ly after it is felt that all other p ro cedures have been exhausted and the A E C has determ ined that a stoppage w ould have v ery serious consequences on the program . W hile the panel has jurisdiction and for 30 days thereafter if it issues recom m endations fo r settlem ent, the parties to the dispute are to continue existing terms and conditions o f em ploym ent. I f the panel fails to issue recom m endations, or if either p arty rejects the recom m endations w hich m a y be issued, the parties are free to take further action. F rom J uly 1953 to M arch 1957, 32 cases were heard b y the “ C hing” panel as com pared w ith 61 cases handled b y the earlier “ D a v is” panel (nam ed after their respective chairmen, C yrus C hing and W il liam H . D a vis). T h e A E C has a v ery im m ediate interest in all labor-m anagem ent negotiations at atom ic installa tions because o f the special factors o f G overn m en t ownership o f plant and m aterials and the necessity fo r con tin u ity o f p rod u ction at certain vital installations. I t reserves to itself absolute and final authority on questions o f security— an issue o f considerable contention in the process o f de velopin g effective collective bargaining. T h e A E C also is in the peculiar position o f being a silent third partner to labor-m anagem ent negotiations since it “ reviews labor expenses under co st-ty p e contracts as a part o f its responsibility for assuring ju diciou s expenditure o f public fun ds.” 10 One difficulty, suggested b y the president o f the A F L -C I O M e ta l Trades D epartm en t and other observers, is the lack o f econom ic pressure felt b y the m anagem ent side.11 T h e contractors have no capital investm ent in the installations, do n ot com pete for custom ers, and lack the m otive o f profits or the fear o f loss as the basis for settlem ent since th ey operate on a cost-plus-fixed-fee A E C contract. Thus the strike as the ultim ate eco n om ic w eapon lacks m uch of its private industry effectiveness. T h e history o f labor relations in A E C installa tions has been reasonably sm ooth p artly because o f organized lab or’s recognition o f the special national interest in these activities and, according to managem ent, partly because o f a certain degree installations, w ith necessary safeguards w ritten into the agreements to p rotect p rop erty and processes and to carry on certain essential m ainte nance functions in the event o f failure to reach satisfactory settlements. In the widening area o f peaceful applications in the civilian econ om y, there is no basis fo r any m odification in norm al collective bargaining p ro cedures other than the assurance that basic safety procedures will be m aintained at points affected b y w ork stoppages. o f pressure exercised b y G overnm ent on con trac tors to reach settlem ents w hich in their private operations m ight n ot be so readily acceptable. L en g th y w ork stoppages at a H anford, W ash., construction p roject and at an A E C contractor operation in B uffalo, N . Y ., nevertheless did occu r in the sum m er o f 1956— basically over wage and other paym ent differentials. [E d i t o r ’ s N o t e .— A P ortsm outh, O hio, facility dispute ended a d a y before an 80-day injunction, obtained under the national em ergency provisions o f the T a ft-H a rtley A ct, expired on A ugust 3, 1957.] Agreem ents betw een operating unions and A E C contractors generally do n ot contain detailed clauses w hich are uniquely concerned w ith con d i tions o f w ork at atom ic installations, although reference is frequently m ade to the establishment and adm inistration o f plant safety program s. Som e o f these program s emphasize join t laborm anagem ent participation on plant safety com m ittees; others require the em ployer to m aintain an adequate safety program including appropriate clothing, devices, and equipm ent, and the workers, under penalty o f caution or discharge for n on com pliance, to adhere to the safety regulations; m ore com m on ly, clauses state that workers are to be available for m edical checkups as determ ined b y m anagem ent. In general, these safety and health provisions are n ot so different from those fou n d in labor-m anagem ent agreements in h eavy industry. Clauses w hich require security clear ance as a condition o f em ploym ent are com parable to those in other defense connected activities. Som e o f the A E C con tractor operations, being intim ately associated with basic national defense interests, are substantially similar in that regard to other m ilitary end-products activities such as ordnance and aircraft p roduction. H ence, con d i tions o f collective bargaining w hich app ly in these defense-related industries m ight b e con sidered as largely applicable to som e G overnm ent a tom ic activities. U nder such conditions, the essentiality o f con tin u ity o f operations w ould b e determ ined on the basis o f the particular a ctiv ity in volved and current defense needs. Thus, though strikes h ave occurred in A E C construction and com pon en t installations during the past decade, th ey have n ot resulted in the consequences w hich were on ce thought inevitable. I t m ight be con clu ded that norm al collective bargaining processes should be perm itted in these Interunion Jurisdictional Problems. M a n y o f the labor relations issues in volve interunion w ork jurisdictions. Jurisdictional problem s w ill con tinue to grow as a result o f the v ery fluid nature o f the evolvin g atom ic technology. T h e changing craft requirements due to the greater precision specifications in atom ic activities will tend to narrow the established divisions between organized crafts. T h e y m a y lead to possible overlap as, for exam ple, between boilermakers and pipefitters, or betw een m illwrights and m achinists.12 Satis fa cto ry and lasting settlements o f such issues will be slow in com ing because o f the dyn am ic char acter o f the technology. A s additional advances are m ade and new materials, tools, equipm ent, and operating m ethods are brought into use, jurisdic tional conflicts m a y b ecom e acute. Som e o f the established interunion jurisdictional agreements are presently being revised. A d d ed fam iliariza tion w ith the techn ology and standardization o f nom enclature in atom ic applications m a y help m inim ize the num ber o f potential disputes. W orker and Public Acceptance o f Atom ic Energy. Organized lab or’s leaders w ho are concerned with the possible im pact o f peaceful atom ic develop m ents on the civilian econ om y are facing, along w ith industry and governm ent, the basic problem of securing widespread w orker and public a ccept ance o f atom ic energy as a characteristic of norm al, everyday life. Som e feel that the problem s o f general public education and w orker acceptance o f the hazards o f atom ic plants are separate m atters. In the latter situation, it is argued, conditions differ on ly in degree from other types o f industrial a ctivity risks, fo r example, in mining, explosives m anufacture, and oilfield operations. u C harles F . M a c G o w a n , In ternation al B rotherhood of Boilerm akers, b e fore th e A to m ic In d ustrial F o ru m , S an Francisco, A p r il 5 ,1 9 5 5 . Ui A d e q u a t e r a d ia t io n s a fe t y p r o t e c t io n in a ll s itu a w o r k e r e d u c a t io n , th e A F L - C I O t io n s in v o l v in g a t o m ic a p p lic a t io n s a r e n a t u r a l ^ h a s r e c o m m e n d e d t h e e s t a b lis h m e n t o f a s t a t u t o r y a s s u m e d t o b e a p r io r c o n d i t io n f o r th e ir in t r o d u c L a b o r - M a n a g e m e n t A d v i s o r y C o m m it t e e t o th e t i o n in t o th e c iv ilia n e c o n o m y . A t o m ic E n ergy C o m m is s io n to t o p le a d e r s h ip a d v is e on th e T h e e lim in a t io n o f m a n y p u b li c m is c o n c e p t io n s d e v e lo p m e n t o f s o u n d a t o m ic la b o r r e la t io n s a n d a b o u t a t o m ic e n e r g y c a n b e a c c o m p lis h e d th r o u g h t o a s sist in b r in g in g a b o u t p u b li c u n d e r s t a n d in g w id e s p r e a d d is s e m in a tio n o f a d e q u a t e a n d a c c u r a t e o f p e a c e fu l a t o m ic u se s t h r o u g h l a b o r ’ s o r g a n iz a in fo r m a t io n . t io n a l a n d r e la t e d m e d ia . On th e general is su e of p u b li c - [T h e a re a s o f A E C in flu e n c e o n a t o m ic e n e r g y in s t a lla t io n p o lic ie s a r e th e f o llo w in g :] F ir s t , w e [th e A E C ] r e c o g n iz e t h a t i t is a r o le o f g o v e r n m e n t t o a s su re t h a t w a g e s , h o u r s , s a f e t y r e g u la t io n s a n d w o r k in g c o n d i t io n s a r e a d e q u a t e in te r m s o f th e g e n e r a l w e lfa r e , a n d n o t s u b s t a n d a r d in r e la t io n in d u s tr ia l p r a c t ic e s . th e r e is n o a s su re p r o fit in c e n t iv e t h a t p u b li c to n orm al S e c o n d , w it h a ll c o s t s r e im b u r s e d b y t h e g o v e r n m e n t , fu n d s are to e c o n o m ic a l o p e r a t io n . expended ju d ic io u s l y . G overn m en t m u st C le a r ly w e w ill n o t s u b s t it u t e o u r ju d g m e n t f o r t h a t o f th e c o n t r a c t o r a s t o a p a r t ic u la r w a g e r a t e o r w o r k in g c o n d i t io n . B u t w e d o see t h a t th e g e n e r a l le v e l o f w a g e s is n o t s t r a t o s p h e r ic , a n d t h a t c o n d it io n s in o u r p la n t s a r e n o t u n s t a b iliz in g in r e la t io n t o o t h e r p la n t s . T h ir d , w e r e c o g n iz e a s p e c ific r o le in e n fo r c e m e n t o f c e r t a in la b o r la w s — m o r e s p e c ific a lly , th e D a v i s - B a c o n a n d E i g h t H o u r la w s , as w e ll a s th e e x e c u t iv e o r d e r o n n o n d is c r im in a t io n in e m p lo y m e n t . F o u r t h , w e a c c e p t a r a t h e r s p e c ific a n d p a r a m o u n t r o le in r e la t io n t o s e c u r it y o f in fo r m a t io n a n d o f p la n t . A fift h a r e a r e la t e s t o d is p u t e s s e t t le m e n t . W i t h w e ll o v e r 9 0 p e r c e n t o f o u r e ffo r t , in te r m s o f b o t h d o lla r s a n d p e o p le , d ir e c t e d a t d e fe n s e n e e d s , c o n t in u it y o f p r o d u c t i o n is im p o r t a n t . — Oscar S. Smith, Obligations of Government as Owner, Financier and Consumer in Relation to Collective Bargaining (in Labor Law Journal, Chicago, November 1956, pp. 684-685). k 2 A n t i c ip a t i o n o f th e s e p r o b le m s is as e ss e n tia l Workers’ Health in t o a d v a n c e p la n n in g f o r a u t o m a t io n b y in d u s tr ie s as a re th e e n g in e e r in g b lu e p r in t s a n d th e m a n a g e an Era of Automation m e n t s t u d ie s t o d e t e r m in e th e e c o n o m ic fe a s ib ilit y o f su ch a m o v e . E d it o r ’ s N o t e .— The ex c erp ted fro m R ic h a r d W a im e r, In d u str ia l d u stria l a a rtic le paper w h ic h p r e se n te d M a n a g in g H y g ie n e “ Im p a ct of F o u n d a tio n ” A u to m a tio n R e la tio n s and by , at w as D r. C. of th e D ir e c to r R e la tio n s -P r o d u c tio n In d u str ia l fo llo w s th e In m a t io n is n o t g o in g t o c h a n g e th is. h e r e t o fo r e . 4-j 1956. S u sp en sio n m arks to m a c h in e r y a n d m o n it o r in g o f a u t o m a t ic e q u ip m e n t , w ill c a ll f o r g r e a te r s k ills a n d m o r e t r a in in g and d en o te th e i n t e r e s t peared in th e M a y co m p lete 1956 issu e of M a n a g e m e n t p e r s o n n e l w ill b e E r r o r s in ju d g m e n t [w ill] b e e x t r e m e ly c o s t ly . u n u sed pa per The e d u c a t io n . c a lle d u p o n t o m a k e m a jo r d e c is io n s . on A p r il of r e a d in g . la r g e r n u m b e r o f te c h n ic a l jo b s , th e by p o r tio n s o f tex t h a ve b e e n o m itte d i n e a sier A C o m m it t e e s o f th e I n d u s t r i a l D e p a r t m e n t o f th e C h a m b e r , I n fa c t , m o r e r e s p o n s ib ilit y w ill b e v e s t e d in e m p lo y e e s th a n in c lu d in g m a in t e n a n c e a n d r e p a ir o f th e c o m p le x sp on sored o f C o m m e r c e o f G rea te r P h ila d e lp h ia c o m p a n y ’ s e m p lo y e e s h a v e on C o n fere n c e P r o d u c tio n A a lw a y s b e e n its m o s t v a lu a b le a ssets, a n d a u t o I n a d d it io n , e a ch e m p lo y e e w ill r e p r e s e n t a m u c h la r g e r ap In d u str ia l h e r e t o fo r e . In 19 54 , th e c a p it a l in v e s t m e n t p e r w o r k e r in c a p it a l in v e s t m e n t th e c h e m ic a l in d u s t r y , M e d ic in e a n d S u rg ery. w h ic h th a n is h ig h ly a u to m a te d , w a s t w ic e t h a t o f in d u s t r y as a w h o le , o r $ 2 6 ,0 0 0 ; a n d in s o m e p la n t s i t is c o n s id e r a b ly m o r e . 1 The p r e s e n t in v e s t m e n t p e r e m p lo y e e in th e e le c t r ic A u t o m a t io n n ew p o w e r g e n e r a t io n in d u s t r y , w h ic h is a lm o s t c o m is m o r e th a n ju s t a w p r d t o d e s c r ib e t e c h n iq u e s f o r m e c h a n ic a lly w o r k in o u r p la n t s a n d o ffic e s . p le t e ly a u t o m a t iz e d , is in e x ce s s o f $ 1 0 6 ,0 0 0 .2 a c c o m p lis h in g T h u s , a u t o m a t e d in d u s t r y w ill h a v e a n e v e n A u t o m a t i o n s ig n i h ig h e r fie s a w h o le n e w w a y o f life , i n v o l v in g b i o s o c ia l v a lu e s as w e ll as t e c h n o lo g ic a l on es. It w ill of liv in g to new h e ig h ts . m a in t a in in g not o n ly th e h e a lt h d is r u p t s of it s p r o d u c tio n e ffic ie n c y d u r in g th e p e r io d s w h e n t h e w o r k e r is a lt e r e d u c a t io n a l p a t t e r n s in o u r s c h o o ls , a n d r a is e stan d ard in Illn e s s w h ile w o r k e r s a re a b s e n t b u t r e s u lts in a lo s s o f c h a n g e th e liv in g a n d w o r k in g h a b it s o f p e o p le , ou r sta k e w ork ers. o n th e j o b b u t is n o t fe e lin g w e ll. T h is p a p e r is c o n c e r n e d w it h th e e ffe c t s o f th e s e d e v e l The Preventive Medicine Approach o p m e n t s [in t h e fie ld o f in d u s tr ia l h e a lt h ]. R e g a r d le s s Industry’s Stake in Health Maintenance of th e m eth od o f m a n u fa c t u r in g , th e r e is o n e a p p r o a c h t o h e a lt h m a in t e n a n c e w h ic h is g o o d m a n a g e m e n t p o li c y , a n d t h a t is p r e v e n t iv e T h e s t a t e o f h e a lt h o f a n in d iv id u a l is d e t e r m in e d b y a c o m p le x c o m b i n a t io n o f f a c t o r s in m e d ic in e . v o l v e d in h is a d ju s t m e n t t o h is t o t a l e n v ir o n m e n t . th e t o t a l p h y s ic a l a n d m e n t a l w e ll-b e in g o f th e W hen w o r k e r , b o t h o n th e j o b a n d a t h o m e . t h a t e n v ir o n m e n t fa c e s h u m a n n a tu r e t o fe e l u n e a s y . a lte r a tio n , it is P r e v e n t iv e m e d ic in e is c o n c e r n e d w it h M od ern m e t h o d s o f e n v ir o n m e n t a l c o n t r o l h a v e g r e a t ly I n th e e r a o f a u t o m a t io n , th e a n x ie t y o f e m p lo y e e s is o n e o f th e reduced h u m a n r e la t io n s p r o b le m s w h ic h w ill a rise, a n d a n d in ju r y . th e s e a re c lo s e ly a llie d t o th e h e a lt h a n d w e ll d a t io n ’ s m e m b e r c o m p a n ie s h a s r e p o r t e d a r e d u c O th e r a s p e c ts o f a u t o m a t io n t io n in o n - t h e - jo b in ju r ie s o f 63 p e r c e n t in th e b e in g o f th e w o r k e r . th e p o s s ib ilit y of o c c u p a t io n a l d is e a s e O n e o f th e I n d u s t r ia l H y g ie n e F o u n w ill b e a r m o r e d ir e c t ly o n th e p h y s io lo g ic a l s t a t u s 1 Automation: Feedback to a Better Economy. (In Chemical and Engi neering News, October 31,1955, p. 4648.) * Clyde Williams, Trends in Industrial Research. (In Battelle Technical Review, September 1955.) o f th e w o r k e r , b u t i t is th e s u m t o t a l o f all p r o b le m s , b o t h p h y s ic a l a n d e m o t io n a l, w h ic h d e t e r m in e s th e t o t a l h e a lt h p ic t u r e o f a n in d iv id u a l. Ju ly 1956 h3 p a s t 5 y e a r s , a n d th is is n o t a n e x c e p t io n a l c a s e . [to th e m ]. A u to m a tio n c o n t r o l m e a s u r e s in t h e d e s ig n o f m a c h in e r y a n d in w ill fu r t h e r e lim in a t e o c c u p a t io n a l E n g in e e r s h a v e e m p lo y e d [a t m o s p h e r ic ] h a z a r d s ; b u t n o n o c c u p a t io n a l in ju r ie s a n d d is e a s e s v e n t ila t io n a c c o u n t f o r 9 0 p e r c e n t o f a b s e n te e is m . sam e E v e n th e . m o s t c o m p r e h e n s iv e m e d ic a l p r o g r a m h aza rd s th e te c tiv e o f s u b s t it u t io n h ig h e r o p e r a t in g co sts a ir -c o n d it io n in g is g iv e n to sy stem s. r id d in g becau se o f p e r h a p s u n t r a in e d p e r s o n n e l, can not be c lo t h in g c o m p le t e ly and The th e e n v ir o n m e n t o f r a d ia n t h e a t a n d o f n o is e . w ill b e less c o s t l y t h a n w o r k e r a b s e n te e is m , [w ith r e s u lta n t] and a t t e n t io n w ork W h ere e lim in a t e d , e q u ip m e n t a re pro stan d ard r e q u ir e m e n t s f o r e a c h w o r k e r . s p o ile d p r o d u c t s , h ig h e r d is a b ilit y [c o m p e n s a tio n ], A u t o m a t i o n w ill p r o v i d e th e s o lu t io n t o m a n y in c r e a s e d g r o u p h o s p it a l a n d s u r g ic a l in s u r a n c e su ch p a y m e n t s , a n d m a n y in t a n g ib le lo s se s . Su ch a w ill n o lo n g e r b e e x p o s e d t o a ir c o n t a m in a n t s s in c e program general m a n u fa c t u r in g o p e r a t io n s w ill b e in no w ay p r a c t ic e o f m e d ic in e . in fr in g e s on th e I n d u s t r y a n d it s p h y s ic ia n s e n v ir o n m e n t a l h e a lt h p r o b le m s . W ork ers e n c lo s e d . In m a n y c a se s , w o r k e r s s t a t io n e d a t c o n t r o l p a n e ls h a v e th e o p p o r t u n i t y t o d is c o v e r p h y s ic a l c o n d i [w ill b e ] c o m p le t e ly is o la t e d f r o m th e a c t u a l p r o c t io n s w h ic h m ig h t h a v e g o n e u n n o t ic e d a n d u n e s s in g tr e a t e d , iand s u c h ca se s a re r e fe r r e d t o th e w o r k e r ’ s te m p e r a tu r e , h u m id it y , a n d n o is e [w ill] n o lo n g e r p e r s o n a l p h y s ic ia n . A ls o , t h r o u g h h e a lt h c o u n s e l area [an d] su ch fa c t o r s a ffe c t h is p e r fo r m a n c e . as v e n t ila t io n , I n f a c t , c o n t r o l c r it e r ia in g a n d e d u c a t io n , th e w o r k e r c a n le a r n t o ta k e in b e t t e r c a r e o f h is h e a lt h in ju r y . s t a n d a r d s o f a ir c le a n lin e s s w it h r e s p e c t t o d u s t f o r T h e s o u r c e o f n in e -t e n t h s o f th e a c c id e n t s a re t o s u c c e s s fu l o p e r a t io n o f th e e q u ip m e n t a re fa r m o r e b e f o u n d in m a n ’ s c o n s t it u t io n a n d b e h a v io r w h e n c r it ic a l and to a v o id fu lly a u t o m a t e d fa c t o r ie s th a n th o s e fo r a re s u c h h um an s. t h a t th e A u to m a tio n T h u s , p r o t e c t in g th e e lim in a te s m u c h o f t h e a c t u a l c o n t a c t b e t w e e n o v e r a ll h e a lt h o f t h e e m p lo y e e s e r v e s t h e d o u b le w o r k e r s a n d m a te r ia ls , m a k in g p o s s ib le [th e] u se c o n fr o n t in g t h e m a c h in e .3 p u r p o s e o f k e e p in g h im o n th e j o b a n d m a k in g h im o f in g r e d ie n ts fo r m e r l y t o o t o x ic t o [b e h a n d le d ] a s a fe r, m o r e e ffic ie n t w o r k e r as w e ll. s a fe ly . Implications of Automation for Health Programs m a te r ia ls p r o c e e d f r o m In th e rubber in d u s t r y , [fo r e x a m p le ], r a w b in s t h r o u g h s c a le s a n d in t o th e m ix e r w it h o u t m a n u a l h a n d lin g . L et us [c o n s id e r ] th e [T h e in d u s t r y h o p e s ] t o d e v is e a u t o m a t ic m a c h in e r y t o id e a l in d u s tr ia l h e a lt h p r o g r a m as m a n y le a d in g c o m p a n ie s h a v e i t t o d a y r e d u c e a ll m ix e d s t o c k s in t o p e lle t o r a n d se e h o w i t fits th e r e q u ir e m e n t s o f th e a u t o c o n d i t io n s o [th e y ] c a n b e c o n v e y e d t o b in s o v e r m a t e d in d u s t r y , w h a t a d a p t a t io n s w ill h a v e t o b e a u t o m a t ic m ills f o r fe e d in g e x tr u d e r s o r c a le n d e r s .4 m a d e , a n d h o w t h e y c a n b e a c c o m p lis h e d . [v isc o u s ] [I t [ T o c it e a n o t h e r e x a m p le ] in o n e p la n t m a n u s h o u ld b e n o t e d , h o w e v e r , th a t] w e h a v e v e r y f a c t u r in g la r g e m e t a l c o n t a in e r s w h i c h r e q u ir e d lim it e d e x p e r ie n c e o n w h ic h t o b a s e a n e v a lu a t io n m a n u a l s o ld e r in g o f s id e a n d e n d s e a m s , r e s u lt in g o f th e m e d ic a l n e e d s c o n n e c t e d w it h c o n t in u o u s in a n e x p o s u r e t o le a d a n d s o lv e n t s , a u t o m a t ic p r o c e s s in g m e t h o d s o f m a n u fa c t u r in g . e q u ip m e n t w a s in s t a lle d w h ic h p e r m it t e d b e t t e r v e n t ila t io n a n d c o m p le t e ly e lim in a t e d e x p o s u r e t o E n v ir o n m e n ta l a t m o s p h e r ic C o n d itio n s. c o n t a m in a n t s In a re th e w e ll id e a l th e t o x ic m a te r ia ls . p la n t , c o n t r o lle d . h e a lt h p ro te cte d , N o t o n ly w a s t h e w o r k e r s ’ but a s u p e r io r product w as a c h ie v e d .5 I n d u s t r ia l h y g ie n is t s k e e p a c o n s t a n t c h e c k a t all o p e r a t io n s w h e r e in d u s tr ia l d u s t s o r t o x ic fu m e s o r g a se s a re a t h r e a t. T h e h a r m fu l p r o p e r t ie s o f all r a w m a te r ia ls u s e d in t h e m a n u fa c t u r in g p r o c e s s have been d e t e r m in e d th ro u g h * G. Friedmann, The Emergence of the Human Problems of Automation The Free Press, 1955. * *Automation In Rubber Manufacturing, Report of a Symposium spon* sored by the Akron Rubber Group, October 28, 1955. (/» Rubber Age, December 1955.) * O. Richard Walmer, Worker Welfare in the Era of Automation, Special Report No. 7, American Management Association, New York, 1956. b i o lo g i c a l te s ts . T h e in d u s tr ia l p h y s ic ia n is a ls o w e ll a c q u a in t e d w it h t h e s p e c ific h a z a r d s e n c o u n t e r e d in h is c o m p a n y a n d w it h th e p h y s io lo g ic a l e ffe c t s o f exposure* UU Effect on the Medical Department W h ile a u t o m a t io n w ill r e lie v e th e [d a n g e rs o f] d a y - t o - d a y c h r o n ic e x p o s u r e s t o t o x ic m a te r ia ls , W h a t e ffe c t w ill [a u to m a t io n ] h a v e o n t h e fu n c th e r e s t ill e x is ts t h e d a n g e r o f c a t a s t r o p h ic e x p o su r e s d u e t o t io n s o f th e [in d u str ia l] m e d ic a l d e p a r t m e n t ? r u p t u r e s in t h e lin e s o r o f a c u t e in d u s tr ia l h e a lt h s p e c ia lis ts H ow e x p o s u r e s w h e r e m a in t e n a n c e w o r k is in v o l v e d . can a n t ic ip a t e W o r k e r s a c c id e n t a lly a n d d r a s t ic a lly e x p o s e d t o h e a lt h p r o b le m s t h a t m a y b e c a u s e d b y a u t o m a th e t o x ic m a te r ia ls w ill r e q u ir e s p e c ia l a n d p r o m p t t io n in in d u s t r y ? trea tm en t. w ill b e r e q u ir e d f o r th e t r e a t m e n t o f in ju r ie s a n d N or w ill a u t o m a t io n in v e s t ig a t in g to x ic e lim in a t e p r o p e r t ie s th e of new need C e r t a in ly e v e n le s s s t a ff t im e f o r t r a u m a t ic s u r g e r y in v ie w o f t h e r e d u c t i o n in fo r s a fe t y h a z a r d s . p rod u cts b e f o r e in t r o d u c in g t h e m o n th e m a r k e t o r , b e t t e r in d u s tr ia l y e t , in t h e d e v e lo p m e n t s ta g e s . th a n W h e r e h a r m fu l B u t th e m o d e r n c o n c e p t o f [th e] h e a lt h [p r o g r a m ]— p r e v e n t io n c u r e — w ill b e m ore im p o r t a n t r a th e r th a n ev er. p r o p e r t ie s c a n n o t b e e lim in a t e d , c o d e s m u s t b e I n d u s t r ia l p s y c h ia t r y , h e a lt h c o u n s e lin g , s e le c t iv e s e t u p f o r t h e s a fe h a n d lin g a n d u s e o f th e p r o d u c t p la c e m e n t th r o u g h e v a lu a t io n o f th e a p p lic a n t ’ s b y t h e p u b lic . p h y s ic a l a n d m e n t a l c o n d i t io n — a ll b e c o m e im p o r t a n t r e s p o n s ib ilit ie s o f th e in d u s tr ia l m e d ic a l A u t o m a t i o n w ill a ls o m a t e A c c id e n t P r e v e n tio n . program . r ia lly lig h t e n t h e s a fe t y d e p a r t m e n t ’ s t a s k [w ith r e s p e c t t o th e ] p r e v e n t io n o f p h y s ic a l in ju r y . It P re p la c e m en t P h y s ic a l E x a m in a tio n . T h e k e y sto n e w ill r e le a s e m e n fr o m d a n g e r o u s jo b s , a n d c o n s e o f a g o o d h e a lt h -m a in t e n a n c e p r o g r a m in in d u s t r y q u e n t ly w ill t r a u m a t ic is th e p h y s ic a l e x a m in a tio n , b e g in n in g w it h th e in j u ries. W it h tr u e a u t o m a t io n th e w o r k e r s e ld o m , p r e p la c e m e n t e x a m in a t io n , f o llo w e d u p b y p e r io d ic if ev er, e lim in a t e c o m e s in m ost of c o n t a c t w it h th e th e m a c h in e r y . a n d s p e c ia l s tu d ie s . N o t o n ly d o e s [th e p r e p la c e M a n u a l h a n d lin g o f h e a v y s t o c k in th e lo a d in g m e n t e x a m in a tio n ] u n c o v e r p h y s ic a l d e fe c t s w h ic h a n d u n lo a d in g o f m a c h in e s a n d in th e t r a n s fe r o f o ft e n c a n b e c o r r e c t e d i f c a u g h t in tim e , b u t i t s t o c k s w it h in t h e p la n t is a ls o e lim in a t e d s o t h a t a ssu res t h a t a n e m p lo y e e w ill b e p la c e d o n a j o b th e r e is n o d a n g e r o f p h y s ic a l str a in , o r in ju r ie s com m en su ra te su ch a b ilit y . as cru sh ed fe e t . The F ord M o to r C o .’s w ith h is p h y s ic a l and m en ta l W h e r e e m p lo y e e a n d j o b a re ill m a t c h e d , e x p e r ie n c e in d ic a t e s a n 8 5 .5 -p e r c e n t r e d u c t io n in th e w o r k w ill n o t b e a s o u r c e o f s a t is fa c t io n a n d th e w ill c r e a te te n s io n a n d s tre s s in num ber of h e r n ia cases w h ere a u t o m a t ic e q u ip m e n t h a s b e e n in s t a lle d .6 th e e m p lo y e e . T h e p r e p la c e m e n t e x a m in a t io n is a ls o im p o r t a n t , A u t o m a t i o n , w h ile n o t e lim in a t in g t h e n e e d f o r f o r r e c o r d p u r p o s e s , in e s t a b lis h in g th e d e g r e e o f d e c is io n s b y h u m a n b e in g s , r e p la c e s s o m e o f m a n ’ s in ju r y o r d is e a s e p r e s e n t a t th e t im e o f [h irin g ], s e n s o r y a p p a r a t u s in c o n n e c t io n w it h th e o p e r a t in g s in c e 4 2 S t a t e s h a v e “ s e c o n d i n j u r y ” [p r o v is io n s in fu n c t io n s o f th e m a c h in e a n d th u s r e lie v e s th e w o r k m e n ’ s c o m p e n s a t io n la w s ] w h ic h m a k e th e c h a n c e o f e r r o r in h u m a n p e r c e p t io n , w h ic h is t o o e m p lo y e r o f t e n a ffe c t e d b y s u c h fa c t o r s a s m e n t a l stre s s a n d w o r k e r ’ s d is a b ilit y t h a t is a t t r ib u t a b le to ] n e w ly p h y s ic a l fa t ig u e . a c q u ir e d d a m a g e a n d n o t f o r th e t o t a l d is a b ilit y . M a n n o lo n g e r n e e d s t o p a c e h im s e lf t o th e r h y t h m o f th e m a c h in e , a r h y t h m lia b le o n ly fo r th e [p r o p o r t io n of a A n a t o m ic a l o r p h y s io lo g ic a l r e q u ir e m e n t s f o r w h ic h m a y b e a n u n n a t u r a l o n e a n d r e s u lt in t e n w ork s io n a n d p o s s ib le a c c id e n t s . C e r t a in ly p h y s ic a l s t r e n g th w ill p la y a le s s e r r o le need to e x a m p le , s tr a in in to t e x tile ca tch H e does n o t even fa u lt y w e a v in g p r o d u c tio n ; fo r o p e r a t io n s , in a u to m a te d th e p r o d u c t i o n in d u s tr ie s can be r e v is e d . s c h e m e , m a k in g p o s s ib le th e s a fe t y d e v ic e s o n a u t o m a t ic lo o m s d is c o n n e c t th e m a 6 John B. Stirling, Automation, Safety’s New Ally, National Safety News, February 1955. c h in e a t th e le a s t a c c id e n t . in U5 e m p lo y m e n t of w ork ers. is It m any h a n d ic a p p e d im p o r t a n t th a t or [th e se a g in g in t o th e m ix e r w it h o u t m a n u a l h a n d lin g . g rou p s] b e p r o v i d e d f o r in o u r e c o n o m ic s t r u c tu r e . P e r io d ic E x a m in a tio n s . [T h e in d u s t r y h o p e s ] t o d e v is e a u t o m a t ic m a c h in e r y t o r e d u c e a ll m ix e d s t o c k s in t o p e lle t o r T h e r e la t io n s h ip o f w o r k [v is c o u s ] tim e c a n a ffe c t h is h e a lt h p ic t u r e . S u c h in te r e s t in need th e w e lfa r e of th e in d iv id u a l not be t o th e stre s s d is o r d e r s w ill m o s t c o n c e r n in d u s tr ia l p a te r n a lis t ic a n d c a n b e a n in s t r u m e n t f o r g o o d p h y s ic ia n s in d u s tr ia l r e la t io n s . h e n c e fo r t h . Up to now in d u s tr ia l e ffe c t iv e in ju s t m e n ts . p h y s ic ia n s h a v e lo o k e d f o r th e g r e a t e s t s y m p t o m s o f stress d is o r d e r s [e. g .,] h e a r t tr o u b le , h ig h b l o o d p r e ss u r e , a n d u lce r s , a m o n g th e e x e c u t iv e g r o u p . T h is W i t h a u t o m a t io n th e n u m b e r o f s k ille d a n d p r o s t r u c t iv e fe s s io n a l w o r k e r s w ill g r e a t ly in c r e a s e . by T h e pe in c r e a s in g a u t o m a t io n p h y s ic ia n s w it h can p r o v id e m o r a le c a n b e m o s t e m p h a s is m e d ic in e on p r e v e n t iv e c a lls f o r o u r m e d ic a l s c h o o ls t o in c r e a s e d m a la d and con a t t e n t io n th e h e a lt h p r o b le m s N o t n e a r ly e n o u g h a t t e n t io n is b e in g d e v o t e d t o p r e p a r in g p h y s ic ia n s t o a d m in in d u s tr ia l v a lu a b le in fo r m a t io n a s t o new f a c in g in d u s t r y . r io d ic p h y s ic a l e x a m in a t io n in th e s e e a r lv d a y s o f G ood p r e v e n t in g fr u s t r a t io n s a n d is te r h e a lt h m a in t e n a n c e p r o g r a m s in in d u s t r y . th e d e g r e e o f o c c u p a t io n a l stress a u t o m a t io n is h a v in g o n it s w o r k e r s . e x c e lle n t H u m an T h is t y p e o f e x a m in a t io n is a n to o l fo r k e e p in g a b rea st of c h a n g in g o f o c c u p a t io n . T h e w o r k e r w ill b e r e lie v e d o f th e d ir t y , b a c k [an d] u n p le a s a n t w o r k in g c o n d i D e s p it e th e f a c t t h a t m a n w ill b e r e q u ir e d le s s a n d le s s t o w o r k jo i n t l y w it h a m a t io n s ; h e w ill b e ta k e n a w a y f r o m th e r e p e t it iv e , c h in e in th e p r o d u c t i o n o f g o o d s , m o n o to n o u s, as a t t e n t io n to H e m u st, o n p la n n in g th e s p e c ia liz e d ta s k s th o s e fo u n d o n th e a s s e m b ly lin e . r e q u ir e th e to le r a n c e o f th e h u m a n o r g a m s m t o th e stresses fu r t h e r e x te n s io n o f p r e v e n t iv e m e d ic in e . h ig h ly w ill th o s e in in d u s t r y a n d th o s e in p r iv a t e p r a c t ic e , k n o w m u c h m o r e a b o u t in d u s tr ia l h e a lt h p r o b le m s a n d m a k e s p o s s ib le th e b r e a k in g jo b s , A u to m a tio n E n g in e e r in g . t h a t a ll p h y s ic ia n s , b o t h su ch [h u m a n ] w ork str e s s -s tr a in fa c ilit ie s and th e n e e d f o r p r o b le m s th e in w o r k in g th e o t h e r h a n d , b e p r e p a r e d t o fill th e r e q u ir e m e n t e n v ir o n m e n t is n o t e lim in a t e d . fo r a n d o t h e r c o n t r o l p a n e l c o m p o n e n t s a t w h ic h th e u p g r a d in g to se m i te c h n ic a l jo b s , su ch as I n s t r u m e n t d ia ls [m a ch in e ry ] m a in te n a n c e a n d r e p a ir , a n d s u p e r (em p loy ee in v is o r y p o s ts . m u s t b e d e s ig n e d w it h th e p h y s io lo g ic a l c a p a c it ie s o f m a n in m in d . T h e c h a lle n g e m a y p r o v e [to b e ] a s tra in , a lt h o u g h f o r m a n y e m p lo y e e s , r e tr a in in g th e a u t o m a t e d in d u s t r y w ill w o r k w ill s o lv e th e p r o b le m . T h e in d u s tr ia l p h y s ic ia n m u s t c a r e fu lly w e ig h th e stresses o f th e j o b a g a in s t th e h u m a n c a p a c it y o f th e in d iv id u a l. Summary T h e p e r io d ic e x a m in a t io n is A u t o m a t i o n w ill, m a k e p o s s ib le a g r e a t e r h u m a n th e b e s t m e a n s f o r k e e p in g th e t w o in b a la n c e a n d iz a t io n o f in d u s t r y . T h e w o r k in g e n v ir o n m e n t a v o id i n g a b r e a k d o w n in th e h e a lt h o f th e w o r k e r . w ill u n d o u b t e d ly s a fe r be [a n d ] h e a lt h ie r , and m a n y o f th e h a z a r d s w ill b e c o m p le t e ly e lim in a t e d . m a k in g A n y n e w m e d ic a l p r o b le m s w h ic h a ris e c a n b e a v a ila b le t o e m p lo y e e s h e a lt h e d u c a t io n a l a d v ic e c o p e d w it h b y a d h e r in g t o th e p r in c ip le s o f p r e a n d [lite ra tu re ] o n s u c h s u b je c t s a s h o m e s a fe t y , v e n t iv e n u t r it io n , a n d s a n ita tio n , in d u s t r y s e r v e s t o c u t t e c h n iq u e s o f in d u s tr ia l h e a lt h s p e c ia lis ts in a ll th e p r o fe s s io n a l fie ld s. H e a lth dow n C o u n selin g and E d u c a tio n . By o n n o n o c c u p a t io n a l illn e s se s a n d in ju rie s . U6 m e d ic in e , u t iliz in g th e k n o w le d g e and Part IL Effects of Automation on Industrial Relations in General and on Specific Collective Bargaining Relationships. U7 i n d u s t r ie s T h e E ffe c t o f A u to m a t io n at d if f e r e n t d if f e r e n t i m p a c t s . o n I n d u s tr ia l R e la tio n s p r o b a b ly h a v e t im e s and w it h q u it e M o s t a f f e c t e d i n d u s t r ie s w i l l q u it e a b it o f tim e in w h ic h to t h i n k t h r o u g h t h e l a b o r p r o b le m s a u t o m a t i o n w i l l B y it s e l f , ro m an ce b e h in d th e th a n “ a u t o m a tio n ” W hen t h e w o r d i t s e lf a n d t e c h n o lo g ic a l co m e w o rd m e a n in g . up ch an g e a g a in s t it we d e s c r ib e we and c r e a t e a n d to p l a n w h a t e v e r a d j u s t m e n t s m a y b e m o re to n ecessary. go th e k in d re p re se n ts, c o m p l e x it y has try h a d to b e d o n e o v e r n ig h t , s u c h a s l e t t i n g a t t r i t i o n q u ic k ly w o rk vag u en ess. th e s u r p lu s la b o r or r e t r a in in g key n e a r ly T h e r e a r e a ls o l i k e l y to b e s o m e e ff e c ts o n l a b o r th a t c a n b e b ro u g h t u n d e r th e a u to r e l a t i o n s w h i c h a r e i n d e p e n d e n t o f t h e s p e e d w it h d e v e lo p m e n t s w h ic h to g e th e r e m b race w h ic h m a tio n r u b r ic . 1. o ff e m p lo y e e s . N o n e t h e l e s s , t h e r e s e e m to b e t h r e e q u it e d i s t i n c t e v e r y t h in g I t i s o f t e n p o s s ib le to d o t h in g s o v e r a p e r io d o f t im e t h a t c o u ld n o t b e m a n a g e d i f t h e y of T h e lin k in g a u t o m a tio n co m e s; fo r e x a m p le , th e up g r a d in g o f t h e l e v e l o f s k i l l s r e q u i r e d i n t h e l a b o r to g e th e r o f c o n v e n t io n a lly se p a r a t e m a n u f a c t u r i n g o p e r a t io n s in t o l i n e s o f c o n fo rce a n d tin u o u s m o r e s p e c ia liz e d , m o r e r o u t i n e , a n d le s s i n t e r e s t i n g p r o d u c tio n th ro u g h w h ic h th e m o v e s “ u n to u c h e d b y h u m a n h a n d s .” p ro d u ct jo b s . T h i s f ir s t th e r e v e r s a l o f th e p a s t tre n d T h ese tw o e x a m p le s su g g est to w a rd th a t a u to m a t i o n w i l l n o t c o n f r o n t u s s o l e ly w i t h “ p r o b le m s ” d e v e lo p m e n t , w h i c h d e p e n d s p r i m a r i l y o n m e c h a n i c a l e n g in e e r in g f o r i t s a d o p t io n , w e s h a l l r e f e r to in s i m p l y a s i n t e g r a t i o n , a t e r m a l r e a d y i n w id e u s e i n o n la b o r d ir e c t ly , a s p ro d u c e rs , a n d in d ir e c t ly , a s co n su m e rs. t h e m e t a l w o r k i n g in d u s t r ie s . 2. The u se of “ fe e d b a ck ” s e r v o m e c h a n is m s , w h ic h t h e l a b o r f ie ld , b u t w i l l c o n f e r s o m e b e n e f it s or I t i s i m p o r t a n t to s t a t e q u it e e x p l i c i t l y t h a t , a t in d iv id u a l o p e ra th is e a r ly d a te , p r o b a b ly n o o n e c a n p r e d ic t w it h c o n t r o l d e v ic e s , a llo w t i o n s to b e p e r f o r m e d w i t h o u t a n y n e c e s s i t y f o r c o n f id e n c e t h e o u t c o m e o f s p e c if ic d e v e lo p m e n t s o r h u m a n c o n t r o l. re c o m m e n d W it h fe e d b a c k , th e re is a lw a y s s p e c if ic s o lu t io n s to h y p o t h e t ic a l s o m e b u il t - i n a u t o m a t i c d e v i c e f o r c o m p a r in g t h e p r o b le m s . w a y i n w h i c h w o r k i s a c t u a l l y b e in g d o n e w i t h t h e p o s s ib le w a y i n w h i c h i t i s s u p p o s e d to b e d o n e a n d f o r a w a r e n e s s o f t h e l a n d s o f c h a n g e s a n d p r o b le m s m a k in g , a u t o m a t ic a lly , any a d ju s t m e n t s w o rk p ro ce ss th a t m a y b e n e c e s s a ry . in it is dependent not is th e is lik e ly d e v e lo p m e n t to b r in g . 1. on A u t o m a tio n is lik e ly a n d t e c h n iq u e s . s a f e t y a n d e a s ie r h o u s e k e e p in g . d e v e lo p m e n t o f g e n e r a l- and H e re, to m e c h a n i c a l b u t o n e l e c t r ic a l e n g in e e r in g k n o w le d g e The a g en e ral th e n , are b y a u t o m a tio n : im p ro v e d 3. of s o m e g e n e r a l a r e a s t h a t s e e m l i k e l y to b e a f f e c t e d T h is second p r im a r ily now , a u t o m a tio n th e d e v e lo p m e n t w e s h a l l r e f e r to s i m p l y a s f e e d b a c k te c h n o lo g y ; W h a t i s n e e d e d , a n d w h a t a lo n e s e e m s 2. s p e c ia l- c o n d it io n s , w o r k in g p e r m it g r e a t ly i n c lu d i n g g re a te r M u c h t h i n k i n g a b o u t in c e n t iv e s y s te m s , p a r p u r p o s e c o m p u t in g m a c h i n e s c a p a b le o f r e c o r d in g t i c u l a r l y i n d i v i d u a l f o r m s o f p ie c e w o r k , w i l l h a v e and to b e r e v i s e d o r d is c a r d e d . s t o r in g i n f o r m a t io n n u m b e rs), and of ( u s u a lly in p e r f o r m in g th e fo rm b o th s im p l e of 3. and As so m e tr a d it io n a l c o m p le x m a t h e m a t i c a l o p e r a t io n s o n s u c h i n f o r la y o u ts m a tio n . m a n a g e r ia l r e s p o n s ib ility W e s h a l l r e f e r to t h i s a s p e c t o f a u t o m a tio n a s c o m p u te r te c h n o lo g y ; i t r e s t s p r im a r ily on s p e c if ic n e w d e v e lo p m e n t s i n e l e c t r ic a l e n g in e e r in g . are ch an g ed , m a n u f a c t u r in g e a s ie r ; b u c k p a s s i n g m o re d if f ic u lt to p ro ce sse s a n d th e jo b of fo r th e p e rfo rm a n c e o p e r a t io n s m ay a m o n g d e p a rtm "et a w a r, w it h , o th e r h a n d , th e re m ay w e ll b e ts r w y so m e of becom e fo re m e n H K e iy to t a k e o n in c r e a s e d r e s p o n s i b i l i t y . Areas of Industrial Relations Affected fa cto ry p i n p o in t in g be are O n th e fo rm s of a u t o m a tio n t h a t w ill w o r k th e o th e r w a y , t h a t i s , S o m e o f th e w a y s in w h ic h a u t o m a tio n w ill a ffe c t in d u s t r ia l r e la tio n s w ill o b v io u s ly d e p e n d o n th e t h e y m a y b l u r t h e b o u n d a r ie s o f r e s p o n s i b i l i t i e s sp e e d a n d m a s s w it h w h ic h i t s tr ik e s th e e c o n o m y . t h a t a r e n o w c le a r . 4. I t i s le s s l i k e l y to c o m e a s a t i d a l w a v e t h a n a s a F e b ru a ry 1955 T r a in in g (o r p e rh a p s w ill p r o b a b ly r e q u ir e m o re s u c c e s s io n o f g r o u n d s w e lls t h a t w i l l r e a c h d if f e r e n t h9 r e t r a in in g ) a t te n tio n p r o b le m s th a n th e y h a v e s in c e W o r l d W a r I I . T h e t r a in i n g p r o b le m s c h a n g e .” a r e l i k e l y to c e n t e r o n t h e d e v e lo p m e n t o f n e w a n d p r o b le m s c o m p le x s k ills fo r hew g ra d e s of B u t, w h i le a s s o c ia t e d b r o a d ly w it h f a m ilia r , a u t o m a tio n do th e b r in g m a in t e n a n c e s o m e n e w t w i s t s , s o m e n e w d im e n s io n s f o r c o n t e c h n i c i a n s , w i t h s h i f t s i n o p e r a t o r s ’ s k i l l s b e in g s id e r a t i o n . . W e p r o p o s e t o l o o k b r ie f l y a t t h r e e r e l a t i v e l y m in o r . 5. a r e a s , u s in g a s a b a s i s f o r t h e d is c u s s io n w h a t w e A m a r k e d c h a n g e i n t h e w o r k - c o n t e n t o f jo b s h a v e g le a n e d f r o m t h e l i m i t e d p u b l i s h e d i n f o r m a r e s u l t i n g f r o m a u t o m a t i o n m a y f in d e x p r e s s io n i n tio n th re e fa m ilia r fo rm s: a r e a s w e h a v e s e le c t e d a r e t h e s e : o fte n re q u ire a d ju s t m e n t ; (a ) W age s tr u c t u r e s (b ) th e m ay a v a ila b le and e ff e c ts o n r i g i d l y e x a m p le , by e le c t r ic a l s k ills need in a own o b s e r v a t io n s . The ( 1) t h e e ff e c t s o n t h e a b i l i t i e s r e q u i r e d o f t h e l a b o r f o r c e , ( 2) t h e t r a d itio n a l j u r i s d i c t i o n s o f s o m e u n io n s m a y b e d i s t u r b e d ; f o r th e our d e f in e d j o b to u n if y m e c h a n ic a l a n d s e n io r ity u n it s , a n d new c la s s o f m a in t e n a n c e m e n t. c la s s if ic a t io n s a n d ( 3) t h e p r o b le m o f d is p l a c e w o r k e r s ; ( c ) t h e i n t e r n a l s t r u c t u r e o f s o m e u n io n s i s Abilities Required of the Labor Force l i k e l y to u n d e r g o c h a n g e s ; i n p a r t i c u l a r , i t m a y b e i m p o r t a n t f o r s o m e u n io n s t o g iv e s p e c i a l r e c o g n i t i o n to n e w , s m a l l g r o u p s o f h i g h l y s k i ll e d w o r k e r s . 6. M an ag e m e n ts and u n io n s , a c cu sto m e d W h a t w ill b e th e im p a c t o f a u t o m a tio n o n th e to a b i l i t i e s r e q u ir e d o f t h e l a b o r f o r c e ? W il l i t le a v e t h i n k i n g i n t e r m s o f n a r r o w a n d r ig i d j o b c la s s i u s w i t h a p r e d o m in a n c e o f d u l l , r o u t i n i z e d j o b s , f ic a t io n s , m a y n e e d to b r o a d e n t h e s c o p e o f t h o s e in c l a s s if ic a t io n s s o m e w h a t . d ic t a t e s o f t h e m a c h i n e ? T h e s a m e t h i n g a p p lie s t o t h i n k in g a b o u t s e n i o r i t y u n i t s . 7. F in a lly , th e re is th e p e o p le open up e ff e c t. e m p lo y m e n t are fo rce d to co n fo rm to th e O r i s i t m o r e l i k e l y to jo b s w i t h g r e a t e r i n t e l l e c t u a l c h a lle n g e a n d to r a i s e t h e s k i l l c o m p o s it io n o f t h e l a b o r f o r c e ? T h e a n x ie t y a n d f e a r w h ic h s te m fro m u n c e r t a in t y c o n c e r n in g h o w w h ic h A n y d is c u s s io n o f j o b m i x i s , o f c o u r s e , a d is e m p lo y m e n t w i l l b e a f f e c t e d b y c u s s io n o f p r o p o r t io n s , o f t h e r e l a t i v e w e ig h t s o f a u t o m a t i o n g iv e r is e t o t h e m o s t d if f ic u lt p r o b le m s m a n a g e r i a l , p r o f e s s io n a l, s k i ll e d , s e m is k i l l e d , a n d o f a ll. la b o rin g I t i s h a r d l y s u r p r is i n g t h a t u n i o n n e w s jo b s . G e n e r a lly , a u t o m a tio n a p p e a rs p a p e r s a n d c u r r e n t c o n t r a c t d e m a n d s o f t e n r e f le c t t o b r in g a b o u t a c h a n g e i n t h e m i x , so t h a t t h e t h e s e f e a r s , t h o u g h i t i s w o r t h n o t in g t h a t m o s t r e s u l t i n g w e ig h t s t e n d u n i o n s s e e m t o b e a p p r o a c h in g a u t o m a t i o n w i t h m o re o u t h y s t e r i a a n d w i t h a d e s ir e t o p l a n i n t e l l i g e n t l y s k i ll e d t y p e s o f o c c u p a t io n s . fo r w h a t m a y he ahead. W e ca n n o t sh ru g o ff h ig h ly s k i ll e d to e m p h a s iz e t h e f o r m e r , ra th e r th a n th e la t t e r , le s s W e h a v e o b se rv e d t h i s u p g r a d in g e ff e c t i n a l i m i t e d n u m b e r o f c a s e s , p e o p l e d f e a r s o f b e in g l e f t s t r a n d e d , o f h a v i n g n o but a l t e r n a t i v e j o b o r t h e t i m e a n d m o n e y t o f in d o n e r e a s o n in g t h a n o n s t a t i s t i c a l g r o u n d s . in th e e v e n t o f la y o f f; w e c a n n o t d o w n th e se fe a rs r e a s o n a b le t o e x p e c t t h a t t h e r a t io o f m a n a g e r s t o by c itin g th e v ir t u e s la b o r m o b ilit y , seem s su re and of t e c h n o lo g ic a l in d iv id u a lis m . t o b r in g w i t h it p ro g re ss, c o n c lu s io n m u s t re s t m o re on a p r io r i It seem s e m p lo y e e s w i l l in c r e a s e , i n v i e w o f t h e in c r e a s e d v a l u e o f t h e e q u ip m e n t f o r w h i c h A u t o m a tio n in c r e a s e d th e m a n a g e r w o u ld e m p h a s is becom e a n in d iv id u a l r e s p o n s ib le , and of th e o n m e a n s o f c u s h io n in g t h e s h o c k t o t h e w o r k e r in c r e a s e d p r o p o r t io n w h o i s d is p la c e d , a n d o f r e t r a i n i n g h i m t o a u s e f u l in e v it a b ly b r o u g h t u n d e r th e s u p e r v is io n o f o n e a n d s a t i s f y i n g r o le i n o u r s o c ie t y . m an. E a c h of th e a re a s n o te d a b o v e d e se rv e s c a re fu l c o n s id e r a t io n b y m a n a g e m e n t s a n d each is w o rth y of c o n s id e r a b ly a c a d e m ic r e s e a r c h t h a n h a s b e e n d o n e u p to n o w . O f co u rse , and th e re is and w o r k in g th e m le a d e r a lr e a d y at e x p e r ie n c e o u t. re m a rk e d , As hand fo r one a u se la r g e body of as g u id e in a e x p e r ie n c e d e n g in e e r s and, e l e c t r o n ic fee d b ack e s p e c ia lly and in th e co m p u te r case of th e t e c h n o lo g ie s , m o s t c o n c e rn s, t h a t o f e le c t r o n ic t e c h n ic ia n . In m o st u n io n t h e f a c t o r y , t h e n e w t e c h n o lo g y t a k e s o v e r r e a d ily th e m a t e r ia ls - h a n d li n g and co m p l e t e l y r o u t i n i z e d m a c h i n e o p e r a t io n s a n d t e n d s to e m p h a s iz e , a s f a r a s t h e a v e r a g e p l a n t w o r k m a n i s c o n c e r n e d , jo b s d ir e c t e d a t “ k e e p in g t h e p r o c e s s B ack g o in g b e c a u s e w e j u s t c a n ’t s t a n d d o w n t i m e .” th ir t ie s we c a lle d it m ay T h e v a l u e a n d c o m p l e x it y o f t h e e q u i p m e n t lo o k th e It p ro ce ss n e w t o t h e e n g in e e r s b u t , to m e , i t ’s a n o ld s t o r y . in “ A u t o m a tio n ? to ta l w o rk g iv e r is e to w h a t a m o u n t s t o a n e w o c c u p a t i o n i n i n m a n y r e s p e c t s t h e p r o b le m s a r e e n t i r e l y f a m i l i a r re se a rch th e s i m i l a r l y i n d i c a t e a n e e d f o r a h ig h e r p r o p o r t io n o f u n io n s ; a n d m o re of t e c h n o lo g ic a l 50 As o n e p l a n t m a n a g e r e x p la in e d , “ Y o u c a n ’t a f f o r d t o m e d ic a l c h a s e a l l o v e r t h e f a c t o r y f o r a m a in t e n a n c e m a n d u r in g th e n e x t w h e n s o m e t h in g g o e s w r o n g . t h e h ig h e r s t a n d a r d s o f l i v i n g m a d e p o s s ib le b y H e ’s g o t t o b e r i g h t and t h e r e a n d h e ’s g o t to k n o w s o m e t h in g a b o u t e le c t e c h n o lo g ic a l t r i c a l a n d h y d r a u l i c p r o b le m s , n o t j u s t m e c h a n m ade ic a l.” to w a rd S o t h e p r o p o r t io n o f m a in t e n a n c e p e o p le i s l i k e l y t o in c r e a s e a s w e ll a s t h e s k i l l r e q u i r e d o f th e m . e d u c a t i o n a l, 10 ad van ce, th ro u g h lo n g e r a th e in c r e a s e v a c a tio n s , sh o rte r w o rk w e ek . In r a p id ly A n d , w it h a d ju s t m e n t c o n t in u a t io n s e e a n o t h e r lo n g - t e r m T h i s is n o t to s a y t h a t a ll r o u tin e o r h e a v y w ill y e a rs and b eyon d . m ay of p re se n t m o re be tre n d s h o lid a y s , and a t h a t e v e n t , w e m a y w e ll tr e n d c o n t in u e d : a f u r t h e r j o b s w i l l b e e l im in a t e d o r to o v e r lo o k t h e f a c t t h a t r e d u c t io n i n t h e n u m b e r o f u n s k i l l e d j o b s a n d a n m a n y s k i ll e d jo b s m a y d is a p p e a r o r b e c o m e le s s in c r e a s e in e m p h a s is o n t h e m o r e s k i ll e d a n d p r o im p o r t a n t q u a n t it a t iv e ly . f e s s io n a l o c c u p a t io n s . B u t in t e r m s o f o v e r a ll p r o p o r t io n s , i t s e e m s l i k e l y t h a t a u t o m a t i o n w i l l I n s h o r t , o u r g u e s s i s t h a t b o t h t h e d ir e c t s h o r t - h a v e a n u p g r a d in g e ff e c t o n t h e j o b m i x i n t h o s e r u n a n d th e in d ir e c t lo n g e r-ru n e ffe ct o f a u t o m a a r e a s o f t h e e c o n o m y w h e r e i t i s e m p lo y e d . T h is t io n o n e m p l o y m e n t w i l l c a l l f o r m o r e a n d n o t le s s c o n c lu s io n m a y b e f u r t h e r b o ls t e r e d b y r e f e r e n c e s k ill o n th e p a r t of o u r la b o r fo rce . t o t h e o il a n d c h e m i c a l i n d u s t r ie s , w h e r e a u t o m a tit le d t i o n h a s h a d a r e l a t i v e l y lo n g h i s t o r y a l r e a d y . a f f o r d a p a r t i a l a n s w e r to t h o s e w h o l o o k a t t h e T h e q u a n t it a t iv e im p a c t o f a u t o m a tio n o n e m to a c a u t io u s h o p e th a t W e are e n a u t o m a tio n m ay r is i n g e d u c a t i o n a l l e v e l s i n t h e c o u n t r y a n d a s k , p lo y m e n t in th o se a re a s o f o u r e c o n o m y w h e re i t is “ W h a t a r e p e o p le g o in g to d o w i t h a l l t h a t e d u c a u se d t io n w h e n t h e y f in d t h e m s e lv e s o n t h e d u l l a n d is a lm o s t im p o s s ib le to e s t im a t e . O b v i o u s l y , f ir m s i n s t a l l t h e n e w e q u ip m e n t b e c a u s e i t ro u tin e jo b s o f A m e r ic a n in d u s t r y ? ” h e lp s th e m re d u c e c o sts. tio n W h ile la b o r c o sts a re n o t m ay in d e e d have c re a te d M e c h a n iz a m any d u ll and th e o n ly a re a o f s a v in g s in v o lv e d , t h e y a re t y p ic a lly r o u tin e jo b s ; a u to m a tio n , h o w e v e r, is n o t a n e x te n a s io n b u t a r e v e r s a l o f t h i s t r e n d : i t p r o m is e s t o c u t m a jo r c o n s id e r a t io n , so , on th e fa ce of th e q u e s t io n , w e w o u ld e x p e c t a r e d u c t io n i n e m p l o y o u t j u s t t h a t k i n d o f j o b a n d to c r e a t e o t h e r s o f m e n t o p p o r t u n i t ie s , g iv e n s o m e f r a m e w o r k o f t o t a l h ig h e r s k i l l . e f f e c t iv e d e m a n d . B u t i t i s m u c h e a s ie r to i d e n T h e t r a i n i n g — o r t h e e d u c a t i o n a l j o b i m p l ie d — t i f y j o b s t h a t a r e b e in g l o s t to t e c h n o lo g ic a l c h a n g e w ill th a n im p o r t a n t t h o s e i t i s c r e a t in g . N e g l e c t i n g t h e p o s s i o b v io u s ly b ecom e m o re as th e sp eed d if f ic u lt and m o re o f i n n o v a t i o n in c r e a s e s . b i l i t y t h a t g r e a t e r d e m a n d m a y r e s u l t f r o m lo w e r S t u d i e s o f t h e s k i ll e d l a b o r f o r c e a n d i t s r e c r u i t p r o d u c t p r ic e s , t h e r e i s t h e v i r t u a l c e r t a i n t y t h a t m e n t , t r a in i n g , a n d m o v e m e n t , s u c h n e w p ro d u c ts w ill b e m a d e t e c h n ic a lly o r e co n o m e le c t r o n i c t e c h n i c i a n s r e c e n t l y m a d e b y t h e B u r e a u as th a t on i c a l l y f e a s ib le , p a r t i c u l a r l y b y t h e f e e d b a c k c o n t r o l o f L a b o r S t a t i s t i c s ,1 a r e g iv e n a d d e d s ig n if ic a n c e d e v ic e s n o w b e in g d e v e lo p e d . by is a t le a s t a n open one. T h e q u e s t io n , t h e n , N e it h e r o p t im is t s n o r th e c u s s in g . t e c h n o lo g ic a l d e v e lo p m e n t s we a re d is T h e s a m e m a y b e s a id fo r th e w o r k o f p e s s im is t s c a n a f f o r d t o b e to o d o g m a t ic a b o u t t h e th e B u r e a u lo n g -ru n o p p o r t u n it ie s f o r a d u lt e d u c a t io n i n a w id e v a r i e t y q u a n t ita t iv e e ffe cts of a u t o m a tio n on e m p lo y m e n t . o f f ie ld s . B u t s u p p o s e w e a s s u m e t h a t t h e i n d u s t r ie s w h e r e a u t o m a tio n is u se d e m p lo y a s m a lle r a n d s m a lle r p r o p o r t io n o f th e la b o r fo rce . D e s p it e a d ir e c t e f f e c t o f u p g r a d in g o n t h e j o b m i x , t h e r e m i g h t b e , o f A p p r e n t ic e s h i p , a n d o f t h e m a n y W e c a n e x p e c t m a n y o f th e m o re a le r t e n g in e e r in g c o lle g e s and c o m m u n it y v o c a tio n a l s c h o o ls to r e v i s e t h e ir c u r r i c u l u m s to t a k e a c c o u n t of a u t o m a tio n . M any co m p an y a p p r e n t ic e s h ip p r o g r a m s m a y b e s im ila r ly a ffe c te d . i n t h e o v e r a l l p i c t u r e , a d o w n g r a d in g e ff e c t i f t h e a d j u s t m e n t s t h a t t a k e p la c e a r e p r e d o m i n a n t l y i n Job Classifications and Seniority Units u n s k i l l e d o c c u p a t io n s o r i n s u c h a r e a s a s p e r s o n a l It A f re q u e n tly n o te d c h a r a c t e r is t ic o f o u r e c o n o m y s e e m s a s c e r t a in a s a n y s o c ia l tre n d c a n b e t h a t s e r v ic e s . T h a t s e e m s to u s u n l i k e l y , h o w e v e r . is th e te n d e n c y to w a r d g re a t e r a n d g re a te r s p e c ia l th e iz a t io n dem and f o r p r o f e s s io n a l s e r v ic e s , e s p e c ia lly o f k n o w le d g e and of ta sk s. W o rk has t y p i c a l l y b e e n o r g a n iz e d i n t o t h e s m a l l e s t p o s s ib le i The Mobility of Electronic Technicians, 1940-52, Bureau of Labor Statis tics’ Bull. 1150, 1954; for summary, see Monthly Labor Review, March 1954 (p. 263). 51 u n it s , e a c h o n e o f w h ic h is a r e p e tit iv e p a r t o f a t o t a l p r o c e s s a n d i s so s m a l l i n r e l a t i o n t o t h e w h o le t h a t a s e n s e o f i d e n t i f i c a t io n w i t h t h e t o t a l p r o c e s s p r o v i d e f o r in c r e a s e d j o b c h a n g e s a n d t r a n s f e r s X)f o n t h e p a r t o f t h e p e r s o n p e r f o r m in g t h e j o b i s p e r s o n n e l. a l m o s t o u t o f t h e q u e s t io n . s a t i s f a c t o r i l y i n a p l a n t d i v i d e d i n t o m a c h i n in g , h a s been I n p a r t , th is te n d e n c y a r e s u l t o f t h e d e v e lo p in g t e c h n o lo g y . B u t i t i s a ls o a r e s u l t , a s w e a l l r e c o g n iz e , o f t h e p h i l o s o p h y w h i c h s a y s , ( 1) b r e a k t h e w o r k p r o c e s s d o w n i n t o t h e s m a l l e s t p o s s ib le c o m p o n e n t s , ( 2) F o r e x a m p le , s e n i o r i t y r u l e s t h a t w o r k h e a t - t r e a tin g , g r in d in g , and a s s e m b ly d e p a rt m e n ts m a y n o t m a k e se n se w it h in a n e w d e p a rt m e n t t h a t c o m b in e s a l l t h e s e o p e r a t io n s i n one i n t e g r a t e d f in e ; e x is t in g r u l e s m a y a ls o m a k e i t f it j o b s i n t o a r ig i d s t r u c t u r e t h a t e m p h a s iz e s t h e d if f ic u lt t o s t a f f a n e w in t e g r a t e d d e p a r t m e n t w i t h d u t i e s a n d t h e b o u n d a r ie s o f t h e j o b r a t h e r t h a n th o s e in d iv id u a ls b o t h p a r t ie s a g re e o u g h t to g e t it s p art in th e p ro ce ss, and ( 3) put e v eryo n e t h e n e w jo b s . O n e m a n a g e m e n t g ro u p e v e n su g p o s s ib le o n a n i n d i v i d u a l o r s m a ll- g r o u p i n c e n t i v e g e s t e d t h a t s e n i o r i t y s t a n d a r d s w o u ld u n d e : s y s t e m w h i c h g e a r s p a y to o u t p u t o n t h e p a r t i c u l a r e v o l u t i o n s t e m m in g d i r e c t l y f r o m jo b . m o r e f le x ib le w o r k f o r c e . T h is p h ilo s o p h y in e v it a b ly has te n d e d to In 5*0 a n th e n eed lo r a t h is v ie w , th e d e id e n t if y th e in d iv id u a l w it h a n e v e r m o re n a r ro w v e lo p m e n t o f a t a s k , g iv i n g h i m p o s i t i v e i n c e n t iv e s t o r e s t r i c t h i s a d a p t i t s e l f t o t h e c h a n g in g n e e d s o f a n e v o l v i n g in t e r e s t s a n d n o in c e n t iv e a t a ll to t h in k b e y o n d w o r k p r o c e s s w o u ld m e a n m o r e t h a n m e r e a p p l i c a w o rk fo rce w illin g and a b le to h i s i m m e d ia t e w o r k e n v i r o n m e n t o r t o p la c e h i s tio n o f s e n io r it y p ro t e c tio n s to b r o a d e r u n it s o f o w n p e rfo rm a n c e in th e c o n te x t o f a to ta l o p e ra w o rk . t io n . “ a b i l i t y t o l e a r n ” w o u ld g r a d u a l l y r e p la c e “ a b i l i t y T h i s p h i l o s o p h y a ls o b r in g s w i t h i t a t e n d A s a s t a n d a r d fo r c o n t in u e d e m p lo y m e n t , to d o ” th e jo b . e n c y t o t h i n k i n t e r m s o f s e n i o r i t y u n i t s a s r ig i d a n d n a r r o w a s th e jo b c la s s if ic a t io n s in m a n y c a se s. The Problem of Displacement A u t o m a t i o n i s l i k e l y t o c h a lle n g e t h e s e h a b i t s o f t h o u g h t f o s t e r e d b y d is c o n t in u o u s a n d h i g h l y s p e c ia liz e d m e th o d s of p ro d u c tio n . Fro m I t w o u ld b e s i l l y t o p r e t e n d t h a t t h e r e w i l l n o t th e t e c h n i c a l p o i n t o f v i e w , a u t o m a t i o n t ie s o p e r a t io n s be t o g e t h e r p h y s i c a l l y ; i n t e r m s o f s y s t e m s , e n g in e e r W h e t h e r o r n o t i t c re a te s , d ir e c t ly o r in d ir e c t ly , i n g a n d e c o n o m ic s a l i k e , a u t o m a t i o n r e q u i r e s a n e w a s m a n y j o b s a s i t w ip e s o u t , n o o n e c a n k n o w . w ay D e s p i t e t h e i n e v i t a b le u n c e r t a i n t y a s t o t h e s p e e d o f th in k in g a b o u t t h e f lo w and co n tro l of m any jo b s w h ic h a u t o m a tio n w ill a b o l is h . co n a n d s c o p e o f a u t o m a t i o n ’s i m p a c t , t h i s m u c h a t t in u o u s m o v e m e n t o f w o r k th ro u g h a t o t a l p ro c e s s le a s t se e m s c e r ta in : T h e r e is b o u n d to b e a n e w r a t h e r t h a n th e sto p -a n d -g o p ro g re ss w h ic h is th e i n f lu e n c e a t w o r k w h i c h w i l l s t r e n g t h e n t h e a r g u w o rk — a w a y o f t h in k in g th a t e m p h a s iz e s m e n t s o f p e o p le w h o f e e l t h a t w a g e e a r n e r s o u g h t s u m o f i n d e p e n d e n t o p e r a t io n s . n o t t o b e a r t h e m a i n b r u n t o f t e c h n o lo g ic a l c h a n g e . A l m o s t a s a c o r o l l a r y o f t h e r e a s o n in g a b o u t t h e e f f e c t s o n s k i l l s o f a u t o m a t io n , i t a p p e a r s t h a t a u t o S o c ia l s h o c k a b s o rb e rs , s u c h a s s e v e re n c e p a y , m a t i o n w i l l n e c e s s it a t e b r o a d e r t h i n k i n g a b o u t j o b th e g u a ra n te e d a n n u a l w a g e , u n e m p lo y m e n t b e n e c la s s if ic a t io n s a n d s e n io r it y u n it s . f it s , c a r e f u l t i m in g o f l a b o r s a v i n g i n n o v a t i o n s t o w hen 3 or 4 d if f e r e n t F o r e x a m p le , c o in c id e t y p e s o f g r i n d in g o p e r a t io n s , w it h b u s in e s s u p s w in g s , in c re a s e d i n f o r m a t io n - s h a r i n g a r e t ie d t o g e t h e r b y a u t o m a t i o n , o n e m a n w i l l b e u n i o n s , s e e m l i k e l y to r e c e i v e i n c r e a s e d a t t e n t i o n , a b le t o o p e r a t e t h e in t e g r a t e d g r i n d in g l i n e . b e tw e e n and e a c h n o w r e p r e s e n t in g a s e p a r a t e j o b c l a s s i f i c a t i o n , a s a u t o m a tio n s p r e a d s . T h is m a n a g e m e n ts and I f so m e o f th e se m o b ilit y b e n e f it s a d d t o t h e e m p l o y e r ’s c o s t o f t e c h n o l o g i c a l m a n m u s t h a v e a g e n e r a liz e d k n o w le d g e o f g r i n d i n g ; a n d h i s c h a n g e d , b r o a d e r j o b c la s s i f i c a t i o n i s c h a n g e , t h a t a lo n e w o u l d n o t d is t u r b u s g r e a t l y . l i k e l y to c a r r y m o r e p a y t h a n a n y o f t h e o ld g r i n d I n d e e d , i t i s i m p o r t a n t to r e c o g n iz e c l e a r l y a t l e a s t tw o in g o c c u p a tio n s . ty p es w o rk e r: A s f o r s e n i o r i t y , e x i s t i n g c o n t r a c t c la u s e s a n d of co sts ( 1) lo s s in c u r r e d o f in c o m e by w h i le th e d is p l a c e d l o o k in g fo r a p la n t c u s to m s m a y b e fo u n d u n s a t is f a c t o r y in th e n e w j o b ; a n d ( 2 ) lo s s o f e q u it ie s b u i l t u p o n t h e lig h t o ld j o b i n t h e f o r m o f s e n i o r i t y , p e n s io n r ig h t s , v a of new needs p re se n te d by a u t o m a tio n . W h e r e s e n io r it y p r o v is io n s h a v e a r is e n fro m e r e la c a t i o n r ig h t s , a n d so o n . t i v e l y s t a b l e o p e r a t io n w i t h lo n g e s t a b lis h e d a n d b e n e f it s o f o n e k i n d o r a n o t h e r a r e c l e a r l y a w a y W h ile u n e m p lo y m e n t su sp ect o f a p p r o a c h i n g t h e f ir s t t y p e o f lo s s , t h e m o r e g e n t h a t th e p a r tie s w ill w a n t to c h a n g e th e r u le s to e r a l a d o p t io n o f t h e p r in c i p l e o f s e v e r a n c e p a y f o r c le a r ly d e f in e d o c c u p a tio n a l g ro u p s , we 52 p e o p le w i t h s u b s t a n t i a l e q u it ie s i n u se e x is t in g j o b s to good a d v a n ta g e . S o c ia l r e s p o n s ib ility m a y b e o n e a p p r o p r ia te w a y to s h a r e so m e o f th e w o u ld m e a n t e l l i n g n e w e m p lo y e e s t h a t t h e ir j o b s in it ia l w ere g a in s in v o lv e d . In a d d it i o n , s u c h g a in - te m p o ra ry , r e t r a in in g o ld e m p lo y e e s w ho s h a r i n g s h o u ld s t r e n g t h e n t h e h a n d s o f b o t h m a n h a v e t h e r e q u i s i t e a b i l i t y , p e r m it t i n g t h o s e n e a r a g e m e n t a n d u n i o n o f f ic ia ls a s t h e y c o n f r o n t t h e r e t i r e m e n t to c l a i m p e n s io n b e n e f it s , a n d s o o n . i n e v i t a b le s h o r t - r u n p r e s s u r e s t h a t d e v e lo p w h e n A u t o m a t i o n i s l i k e l y t o h a v e i t s g r e a t e s t im m e e v e r j o b s a r e e lim in a t e d . d ia t e i m p a c t o n o ffic e o c c u p a t io n s . I n d e v e lo p in g p o lic ie s t o c u s h io n t h e i m p a c t o f a u t o m a tio n , as w it h any m a jo r In a sen se, t h a t i s f o r t u n a t e , s in c e i t w i l l a f f e c t a c l a s s o f w o r k t e c h n o lo g ic a l e r s f o r w h o m t h e b lo w c a n b e s o f t e n e d m o s t e a s il y , c h a n g e , t h e t o u g h e s t s it u a t i o n s a r e n o t l i k e l y to n a m e l y f e m a le e m p lo y e e s w o r k i n g i n l a r g e o ffic e s . b e t h o s e i n w h i c h s o m e n e w m a c h i n e s a n d e q u ip N o t o n l y i s t u r n o v e r m a r k e d l y h ig h e r a m o n g fe m e n t a r e i n s t a l le d i n a g iv e n p l a n t ; t h e t o u g h e s t m a le c l e r i c a l e m p lo y e e s , b u t t h e d e m a n d f o r t h e m s it u a t i o n s a r e l i k e l y to a r is e f r o m c o m p e t it io n b e in tw e e n n e w m a rk e ts. p la n ts d e s ig n e d o ld e r o n e s t h a t a r e n o t . fo r a u t o m a tio n and S o m e t im e s t h e t w o p l a n t s One w i l l b e lo n g t o t h e s a m e c o m p a n y , s o m e t im e s n o t . I n c a se s w h e re a u t o m a tio n e x p re sse s it s e lf a s c o m B u t w h e n a u t o m a tio n ta k e s th e fo rm o f c h a n g e s u n i o n s h a v e m u c h g r e a t e r c o n t r o l o v e r t h e e ff e c t s has been if of T h i s b r in g s t o t h e f o r e t h e e d u c a t i o n a l a n d not r e v o lu t io n a r y change, th e B u t even im p o r t a n c e m a in t e n a n c e o f “ f u l l e m p l o y m e n t .” Even of C h a n g e th e le v e l o f u n e m p lo y m e n t b y a fe w p e rc e n ta g e p o in ts , c o m p le t e d , a n d t h e p r o b le m o f d is p l a c e m e n t c h a n g e s f r o m a r e l a t i v e l y m a n a g e a b le q u e s t io n o f a d j u s t m e n t t o a m e n m u s t b e h ir e d o r t r a in e d f o r n e w o c c u p a t io n s , s o c ia l p h y s i c a l i n s t a l l a t i o n a n d t r a n s i t i o n p r o b le m s m u s t b e fa ce d . h e re is b o th g o v e r n m e n t e c o n o m ic p o l i c y d ir e c t e d t o w a r d t h e e q u ip m e n t m u s t b e d e s ig n e d a n d m a n u f a c t u r e d , ca ta stro p h e of a la r m in g p r o p o r t io n s , in w h i c h o r d e r l y t e c h n o lo g ic a l p r o g r e s s b e c o m e s i m A l l t h is t a k e s tim e — n o t d a y s o r w e e k s , b u t m a n y m o n th s o r y e a rs. la b o r m o r e , i t s e r v e s t o e m p h a s iz e , f o r a n e r a o f m a r k e d i t w ill h a v e a n d th e w a y s in w h ic h th e se w ill b e e x p lo r a t o r y sta g e m ade m o st r e t r a i n i n g p r o b le m s a l r e a d y m e n t io n e d . w i t h i n a p a r t i c u l a r f ir m , t h e n m a n a g e m e n t s a n d a fte r a n be in g e t t in g a n e w o n e , a n d w h a t k i n d o f n e w o n e h e g ets. c h a r a c t e r is t ic to h ig h e m p lo y e d w o r k e r , i t i s n o t so i m p o r t a n t t o a s k w h y c o m p e t i t i v e s it u a t i o n . o n e o u t s t a n d in g p o in t been h e l o s t h i s o ld j o b a s h o w m u c h t r o u b le h e h a s i n n o d if f e r e n t f r o m t h o s e w e w o u ld l i k e t o s e e i n a n y For fu rth e r has I n c o n s id e r in g t h e p r o b le m o f t h e d is p la c e d a n d u n m o n o w n e r s h ip , t h e p o lic ie s a p p r o p r i a t e t o i t s e e m a u t o m a t i o n is t h a t i t t a k e s t i m e to i n s t a l l . y e a rs o b v io u s a n d o b v i o u s l y to o i m p o r t a n t n o t t o m e n t io n . p e t i t i o n a m o n g t w o o r m o r e f ir m s n o t u n d e r c o m h a n d le d . re ce n t p o s s ib le . A n d w i t h p r o b le m s l i k e d is p la c e m e n t a n d p e r s o n a l a d j u s t m e n t , t i m e , — G eorge B . B a l d w in and G eorge P . S h ultz o f c o u rs e , p r e s e n t s a m a jo r o p p o r t u n it y t h a t a le r t Industrial Relations Section, Massachusetts Institute o f Technology a n d s o c i a l l y r e s p o n s ib le c o m p a n ie s a n d u n io n s c a n 53 Paper b e c a m e e ven m o re a cu te . F ro m th e F a ll A M A t u rn e d to e v e n t u a lly P e r s o n n e l C o n fe r e n c e w ere 1957, B y e n c o u r a g in g e a r ly c o m p e lle d to w e re lu c t a n tly r e t ir e m e n t re so rt to and la y o f f s . P e r h a p s t h i s w a s o n e o f t h e b ig g e s t c h a n g e s o f a l l . I n a c o m p a n y w i t h a r e p u t a t i o n f o r s t a b l e e m p lo y m e n t , f o r c e d r e d u c t io n i t s e lf w a s a r a d i c a l d e p a r E d i t o r ’s fro m N a o t e .— T h is a r tic le p a p e r p re s e n te d P e rs o n n e l C o n fe re n c e a g e m e n t A s s o c ia tio n ber 21- 23, 1959. have been d e n o te m ade d e le tio n s at is th e e x c e rp te d ann ual F a ll o f th e A m e r ic a n in N ew Y o rk , M in o r c h a n g e s and in s u s p e n s io n M an tu re fro m w h a t h a d b een th e n o rm . As t h e r e d u c t io n in th e w o rk fo rce b e g a n t a k e e ff e c t, a n e w p r o b le m to a ro se in v o lv in g n e w S e p te m w a y s o f h a n d l i n g w o r k a s s ig n m e n t s w i t h a s t r e a m w o r d in g l i n e d o r g a n iz a t io n . m a rk s to h a v e n o t b ee n in d ic a te d in th e in t e r e s t o f r e a d a b ilit y . our o p e r a t in g W e h a v e h a d to r e s t r u c t u r e o r g a n iz a t io n , and m any w o rk e rs w e r e e x p o s e d to r e t r a i n i n g i n o r d e r to f it i n t o t h e n e w w o rk a rra n g e m e n ts. I t is n o w o n d e r, th e n , t h a t th e se c h a n g e s h a v e h a d a p r o f o u n d e ff e c t o n t h e u n io n s . I n g e n e ra l w e d e a l w i t h l o c a l in d e p e n d e n t u n i o n s . H i s t o r i c a l l y , f o r u s a n d f o r o u r e m p lo y e e s , t h e s e i n d e p e n d e n t S o m e P r o b le m s o f C h a n g e u n io n s have been q u it e s u c c e s s f u l, b o th w it h r e s p e c t to g a in in g g o o d w o r k i n g c o n d i t i o n s a n d i n C h a n g e is a n im p o r t a n t p a r t o f A m e r ic a n in d u s t h e ir a b i l i t y t o h e lp m a i n t a i n a n a tm o sp h e re of try . m u t u a l r e s p e c t a n d c o o p e r a t io n . C e r t a i n l y t h e y ’v e succeed ed But P e r h a p s th is is n o w h e re m o re a p p a r e n t th a n i n t h e o il i n d u s t r y . C h a n g e h a s b e e n a c e a s e le s s p r o c e s s t h r o u g h o u t t h e o n e h u n d r e d y e a r s s in c e t h e d r i l l i n g o f t h e f ir s t o il w e ll. in a v o id in g s tr ife . W h ile ch a n g e h a s im p a c t o n o u r r e la tio n s w it h c e n tu r y , it s p a c e in re c e n t y e a r s h a s b e e n fa s te r u n io n s . th a n re sp e cts, th e re has been a f re q u e n t s h ift in g in th e p a s t p r e c e d in g b ro ad e r 10 y e a rs of c o u p le d w i t h a n e w w a y o f w o r k i n g h a v e h a d a n b e e n c h a r a c t e r is t ic o f o u r in d u s t r y fo r th e p a s t a n y o f u s h a s e v e r e x p e r ie n c e d . 6 r e s t r i c t e d e m p lo y m e n t , f o llo w e d b y j o b r e d u c t io n s , Our o b j e c t iv e has t h e s e in d e p e n d e n t been to w o rk out In so m e s o lu t io n s to t h e s e p r o b le m s b u t i t i s o n l y n a t u r a l and m o re to e x p e c t t h a t t h e r e w o u ld b e s o m e s t r a i n . y e a r s t h a n in th e 25. Labor Relations During Change T h i s a c c e le r a t io n h a s h a d a n i m p a c t o n l a b o r r e la tio n s . I t h a s c h a lle n g e d t r a d i t i o n a l e m p lo y e e r e la t io n s c o n c e p ts. As I t h a s c a u s e d u n io n s to r e a c t have a r e s u l t o f o u r e x p e r ie n c e , w e b e lie v e le a r n e d s o m e t h in g about h a n d lin g d if f e r e n t l y b e c a u s e o f n e w s t r a i n s — b y p r o d u c t s o f r e l a t i o n s p r o b le m s a s s o c ia t e d w i t h c h a n g e . c h a n g e it s e lf . a b ly t h e s e le s s o n s T e c h n o lo g ic a l i m p r o v e can to in c r e a s e p r o d u c t v o lu m e w it h o u t a c o r r e s p o n d r e la te d a re a s . of u n it s , sto p p e d h ir in g in 1952 of w age and a In d e e d , in a n u m b e r e arn e rs w as v ir t u a lly p ro g ram of p e rso n n e l be su m m ed t o a p p r e c ia t e t h e p o i n t s o f v i e w m e n t s h a v e e n a b le d m a n y o f o u r o p e r a t in g u n i t s in g g r o w t h i n e m p lo y m e n t . c o u ld P ro b up by s a y i n g t h a t w e h a v e le a r n e d t h a t i t i s n e c e s s a r y I n o u r c o m p a n y , c h a n g e h a s b e e n m o s t d r a m a t ic i n o u r r e f in in g o p e r a t io n s . a ll we la b o r c o n s id e r t h e s e le s s o n s i n of o th e rs. We th re e s e p a ra te b u t F i r s t , w e h a v e c o m e to r e a l iz e t h a t i n i n t r o d u c in g a n d im p l e m e n t in g c h a n g e , a n a l l - o u t e ff o r t f o r a c h ie v in g g re a te r p a r tic ip a t io n and p e rso n a l a t t r i t i o n w a s u n d e r t a k e n a s a m e a n s o f r e d u c in g in v o lv e m e n t o f s u p e r v is o r s is im p o r t a n t . th e s u r p lu s . to s a y t h a t in th o se a c t iv it ie s w h e re w e in v o lv e d S u b s e q u e n t ly , h o w e v e r , w e f o u n d t h a t a t t r i t i o n s u p e r v is o r s a t a ll le v e ls in w a s to o s lo w a m e a n s o f r e s o lv i n g t h e p r o b le m . in t r o d u c tio n Ju st w hen accep tan ce . o u r p r e d ic tio n s fo r a n e f f ic ie n t f o r c e of change, T h i s is t h e d e v e lo p m e n t a n d we had th e g re a te st A c o n v ic t io n o n th e s u p e r v is o r s ’ p a r t s e e m e d t o b e w o r k i n g o u t , a n o t h e r c h a n g e w o u ld o f t h e i n h e r e n t w o r t h o f a n e w o p e r a t in g p r o c e d u r e d e s c e n d u p o n u s , o n e w e h a d to a c c e p t in o rd e r can to g e n e ra l a c c e p ta n c e . sta y c o m p e titiv e . N o v e m b e r 1959 Any o v e r m a n n in g th u s su stre n g th e n m a n a g e m e n t ’s hand in g a in in g But I n o n e o f o u r p la n ts , w e h a d a g o o d o p p o r tu n it y to t e s t t h i s p r in c i p l e . Seven y e a rs p r o g r a m w a s d e v e lo p e d b y a v e r y s m a l l n u m b e r th e o f t o p l e v e l m a n a g e m e n t p e o p le . w e do e n c o u n te re d ye ars a t th e sa m e p la n t. o f th e p la n V e r y e a r ly , it s u p e r v is o r re s is t a n c e . ago, a n o th e r n e w p ro g ra m Less th a n 2 s ta b ility to needed to p m a n a g e m e n t to e m p lo y e e s u p e r v is o r s of tim e , a d m in is t e r in g it . They la t e r have w o rk e d th e ta sk o u t th e 250 m anage W h a t, and keep th e n , can p r o d u c tiv ity if p o s s ib le . a t t it u d e can be as to as change— even O n ce is S p e c ia l e ffo rts a re o b je c t iv e ly an of gage of a ccu ra te se cu re d , d is p e lle d p o s s ib le ahead fe a rs and w h ic h th e are p ro p o sed c h a n g e p u t in a lig h t w h ic h m in im iz e s b a s ic — a n d c o n s id e r a b le n u m b e r o f c h a n g e s r e s u lt e d f r o m th e se co m m e n ts. r e a c tio n g r o u n d le s s s u p e r v i s o r s f o r t h e ir c o m m e n t s a n d s u g g e s t io n s . A d e t e r m in e e m p lo y e e d e t a ils o f t h e p l a n w h i c h w a s t h e n s u b m i t t e d to a l l a llo w C e r t a i n l y , w e m u s t r e d o u b le o u r e f f o r t s to k n o w 25 w o u ld o f e m p lo y m e n t . b o ls te r m o r a le w h a t e m p lo y e e s a r e t h i n k i n g . w h o p a s s e d t h e id e a d o w n to a c o m m it t e e o f w ho f o r c e s s e ld o m h ig h ? w a s c o n c e iv e d T h i s t im e , t h e b r o a d c o n c e p t w a s d e v e lo p e d b y c o m p e t it iv e m e n t to s lo w t h e p a c e o f c h a n g e f o r t h e s a k e o f ago, a n e w t h o r o u g h l y u n d e r s t a n d a b l e — e m p lo y e e r e s i s t a n c e . T h i s d o e s n o t g e t r id o f th e u n p le a s a n t f a c t s t h a t W e fe e l s u re t h a t th is m e th o d w a s l a r g e l y r e s p o n s ib le f o r t h e s u c c e s s f u l a c c e p t e x is t a n d m u s t b e fa c e d . a n c e of th e ch a n g e . h o w e v e r r o u g h , c a n b e le s s e n e d b y h a n d l i n g i n a T h i s c o n c e p t d o e s n o t i m p l y t h a t i t i s p o s s ib le w a y t h a t -is d i r e c t , f a i r , a n d h o n e s t . T h e b e s t c o m m u n ic a t i o n e f f o r t s a r e d e m a n d e d to a c c e p t a l l t h e id e a s a n d s u g g e s t io n s r e c e iv e d . But i t is p o s s ib le to in a u g u r a te to d e s c r ib e a n d e x p l a i n a n e w p r o g r a m o n c e i t h a s p ro g ra m s w it h g r e a t e r p r o b a b i l it i e s f o r s u c c e s s i f B u t e v e n th e se ch o re s, t h e f ir s t li n e been fo re m a n is in v o lv e d fro m th e o u tse t. d e c id e d u p o n , f ir s t in b ro a d co ncep t I c a n n o t t a lk o n t h is s u b je c t o f c h a n g e w it h o u t I t h a s [a lso ] b e c o m e c l e a r to u s t h a t t h e p r o b a b i li t y o f s u c c e s s is g re a te r if u n io n p a r t ic ip a t io n , c o m m e n t in g o n t h e i m p o r t a n c e o f u p w a r d in it s t r u e se n se , c a n b e a c h ie v e d . m u n ic a t i o n . P e r h a p s th e P r o v is io n n e e d f o r s e e in g t h e o t h e r f e l l o w ’s p o i n t o f v i e w i s t io n i s v i t a l i n g re a te st w h e n ch an g e. we t a lk a b o u t th e and l a t e r i n s p e c if ic d e t a i l . u n io n s . T h is fo r u p w a rd t h e w h o le co m c o m m u n ic a a p p ro a ch to e f f e c t in g H e r e w e c a n n o t o v e r lo o k t h e s u p e r v i s o r p o i n t s u p t h e n e e d f o r p a t ie n c e a n d u n d e r s t a n d i n g . a s a m a in c h a n n e l. W e h a v e f a ile d i n t h o s e i n s t a n c e s w h e r e w e h a v e u p w a rd n o t p e r m it t e d s u f f ic ie n t d is c u s s i o n a n d w h e r e w e S p e e d i n g e t t in g t h e f e e d b a c k f r o m e m p lo y e e s m a y F o r o n e th in g , t h is k in d o f c o m m u n ic a t i o n is p r o b a b ly th e fa ste st. h a v e b e c o m e i m p a t i e n t w i t h o t h e r s ’ u n w i l li n g n e s s a llo w t h e e a r l y i n c o r p o r a t i o n o f w o r t h w h i l e id e a s to a c c e p t o u r p o i n t o f v i e w . a n d s u g g e s t io n s w h i c h c a n h e l p g a i n a c c e p t a n c e of th e p ro g ra m . W e a r e c o n v i n c e d t h a t w e m u s t m a k e e f f o r t s to I t i s im p o s s ib le to o v e r s t r e s s t h e i m p o r t a n c e o f c o n v i n c e t h e u n i o n t h a t a g iv e n p r o p o s a l m a k e s sen se, and th a t, co m p are d w it h a lt e r n a t iv e s , it p ro m o te s r a t h e r e m p lo y e e s e c u r ity . In th e th a n n e g o t ia t in g u n i o n s , w e f o u n d i t h e l p f u l to a v o id b e in g s e n s it i v e t o e m p lo y e e v i e w s . a v a ila b le e n d a n g e rs w it h r e s u lt . th e le a r n e d a c tio n s o r p o s it io n s w h i c h c a u s e t h e u n i o n to c o m m i t i t s e l f g u a rd p u b lic ly a g a in s t th e p ro g ra m h e a r. a s a w h o le . Tem p o r a r y c o m p r o m is e o n s o m e p o i n t s c a n b e p r e f e r P e r h a p s th e m o s t im p o r t a n t t h in g w e h a v e is th a t a ll le v e ls a g a in s t h e a r in g of m an ag em en t m u st o n ly w h a t th e y w ant to W e in E s s o a re s t a k in g m u c h u p o n th e in v e s t a b le t o f u l l - s c a le u n i o n o p p o s it io n . m e n t s i n s u p e r v i s o r y t r a i n i n g i n t h e s e d ir e c t io n s . W e have M a n y p e o p le l i k e to p h ilo s o p h iz e t h a t c h a n g e i s good. A n d w e m u st l i s t e n , e v e n w h e n d is q u i e t i n g i n f o r m a t io n is t h e t h e c o n v i c t i o n t h a t t h r o u g h im p r o v e d s u p e r v is o r y s k ills a n d b e tt e r c o n c e p ts o f p a r t ic i O v e r a p e r io d o f t i m e , i t e n la r g e s o p p o r t u n i t y a n d in c r e a s e s t h e t o t a l n u m b e r o f j o b s i n p a t i v e le a d e r s h i p , w e w i l l b e a b le t o c o n t i n u e to th e e c o n o m y . m ake B u t t h is is n o t a lw a y s tr u e in th e p ro g re ss, c a s e o f i n d i v i d u a l p l a n t s o r i n d i v i d u a l e m p lo y e e s . and C o n s e q u e n t ly , o r g a n i z a t io n . it is not v e ry r e a s s u r in g to th e e m p lo y e e s i n i n d u s t r i e s w h e r e s e v e r e d is l o c a t i o n s are ta k in g p la c e or e m p lo y m e n t cu ts g re a te r p r o d u c tiv ity , — Jam es N . G a re o r r in g e Em ployee Relations Manager Esso Standard Oil C o. a n t ic i p a t e d . s tim u la te a t th e s a m e t im e , k e e p th e s u p p o r t o f o u r 55 IV D C o n fe r e n ce T h e G o o d r ic h I n c e n t iv e -P a y S y s t e m W a g e - R a t e D e t e r m in a t io n a n A u to m a te d U n d er the Goodrich modified B ed eau x incen tive- in p a y system , there is a base rate which represents 60 R u b b e r P la n t units o f work. the unit value. O ne-sixtieth o f the base rate is So it is possible, at the end of the shift, to m u ltip ly the total n um ber o f units o f work for which the em ployee has received credit b y the J o s e p h W . C h il d s and unit value to determ ine his incentive earnings. W e h ave no quarrel w ith the co m p an y on the R alph H . B er g m an n * definition o f “ n orm al.” B o th co m p an y and union tim e-stu d y engineers w ork from the basic assum p tion th at a m an w alking on level ground a t the rate o f T he r u b b e r in d u s t r y , p a ce.” as m o st other industries, 3 m iles per hour is w alking at a “ norm al A person who is observed to w alk at this has witnessed trem endous technological advances pace for a full hour has therefore worked for in^the past few years. m inutes at a “ n orm al.” E v e n m ore autom atic m a chinery will be introduced in com in g years. 60 the parties h ave agreed th at such w alking m u st be adjusted B e 10 percent cause m o st workers in our indu stry are paid accord b y an effort rating o f in g to an incentive program , it has long been clear and for personal tim e. th a t som e special attention w ould h ave to be paid 66 to the rate and w ork load problem s which accom other words, a w alk o f p a n y m a jor technological change. H ow ever, 66 A n agreem ent to allow for fatigue T h u s he m u st be allowed m inutes in which to w alk th at distance. units o f w ork. 3 T h is m eans th at an em ployee 6 m inutes w ith B . F . G oodrich C o ., negotiated abou t a year m a y take approxim ately ago, represented a substantial first step tow ard reasons and for fatigue, and still earn dealing w ith these m atters. w ork in an hour if he w alks at a pace of per hour during the other W h ile it is com m on to think o f an incentive In miles earns the operator off for personal 60 units o f 3 m iles 54 m inutes. sy ste m providing unlim ited earnings opportu n ity, this generalization does n o t a p p ly to rubber plants. Provisions jor New Standards. F o r each jo b visions o f the m aster agreem ent w ith G oodrich, classification and each standard, there has developed a general understanding on th e the part o f m an agem en t and on the part o f em standards when ployees as to the q u a n tity o f production which can product, tools, m aterial, design, or other produc be expected during the shift. co m p an y tion conditions. T h is level o f produc has the there right U n d er the pro to establish new are changes in m eth od , A n y revision resulting from such A n d m en changes m u st be confined to the elem ent or ele w ho h ave the sam e jo b classification, though their m en ts o f w ork in which the w ork requirem ents tion yields a certain level o f earnings. specific jo b m a y be som ew hat different, will tend or occurrences h ave changed since the prior labor to h ave sim ilar earnings for each horn* worked. stan dard w as established. In som e contracts, the parties h ave specifically w ork for th a t elem ent rem ains unchanged. provided th at earnings are n o t perm itted to exceed a certain level. U n d erstan d a bly, T h ese “ caps” are in effect in other each new m achine in our in du stry has brough t w ith it substan tial changes plan ts w ith ou t contract language. in som e portions o f the jo b requirem ent. T h e R u b b er W orkers contracts provide also for special w age pa ym en ts for unusual conditions. T h a t clause, in other w ords, guarantees elem ental tim e as lon g as the other portions are often unchanged. If But T h e issue then becom es: w h at shall be the allowed units o f a m achine breaks dow n, if there is a stock delay, or if the stock is n ot up to standard, the em ployee receives a rate guarantee. guarantee is 100 percent ♦General V ice President an d R esearch D ire cto r, respectively, U n ite d R u b ber, C ork , L in oleu m a n d P lastic W orkers o f A m erica, A F L - C I O . E d it o r ’ s N o t h .— 1T h is and the follow in g article, Im p a ct o f A u to m a tion o n F o r d - U A W R elationships, are excerpts from papers given at the C on fer ence o n A u to m a tio n an d M a jo r T ech n ological C h ange h eld in W ash in gton , A p ril 26, und er auspices o f the Industrial U n io n D e p a rtm e n t, A F L - C I O . Selected from am o n g several papers heard at th e m eeting, these tw o deal w ith p ractical solu tion s t o problem s in specific plants. In som e contracts, the o f past average earnings; in others, depending on the condition, the guar antee is som e percentage o f past earnings— usually 90 to 95 percent. Ju n e 1958 56 w ork (and, therefore, the p a y ) for the new or changed elem ents? If those th a t it is im possible under the B ed eau x sy ste m , for an average em ployee to w ork a t a consistent elem ents are m a n u ally 95 pace o f controlled— units per hour. B u t the incentive in the sense th a t the em ployee has an op p ortu n ity sy ste m in the G oodrich plants has been so altered to w ork as rap idly as his skill and effort perm it over h im — then cu stom ary tim e-stu d y techniques are em ployees regularly earning far in excess o f applied. units per hour. T h ere m ay be som e opinion on the proposed tim e differences allowances, of and there m a y h av e to be negotiation over the new the years th a t w e fou n d cases o f 95 T ire builders— and their jo b is one o f the hardest in the plan t— were earning 110 abou t units per hour, w eek after w eek. Since the new standard, b u t the problem s can u sually be w orked agreem ent provided 95 units m a x im u m shall be o u t betw een the parties. m any 95 th a t the per hour, all efficiencies above priate th a t standard so th at the em p loyee’s earnings were and an em ployee’s w ork m ore, The B . provides to F. the pace is being of the tied, m ore a special m eth o d “ restricted” trolled” o f determ ining the elem ents elem ents. or “ m achine con F o r each such elem ent, the 97.2 units o f T h is is calculated from a form u la which provides th a t the actual m achine tim e shall be m ultiplied b y a b ov e in the w ith an appro base rate and w ork m aintain ed for the particular level o f production . m achine. em ployee will be paid at the rate o f w ork. a d ju stm en t G oodrich agreem ent o f last year rate of p a y for these elem ents, w hich m ig h t be called were rolled b a ck to 95, H ow ever, technological developm en ts and au to m a tic m achines in the rubber indu stry h av e m ean t 90 60 over n orm al pace) (in effect, and 50 percent then increased by 8 Machine-Controlled Operations. agreem ent to those job s where the new m achines restrict the em ployees’ earnings opportu n ity over stan tial portion o f the w ork cycle. operations, instead payin g restricted for of providing tim e on a an a su b F o r those m eth od of elem en t-b y elem ent basis, the agreem ent provides for a new m eth od o f calculating incentive earnings. In this new m eth o d , the first step is to deter percent to determ ine the allow ed units o f w ork 8 The also provided for a som ew hat different approach percent m ine the true physical w ork required o f the opera represents an allowance to provide for personal tor— the am ou n t o f w ork which he can perform in for th a t part o f the w ork cycle. The tim e including lunch. an I t is clear then th a t as m ore and m ore elem ents h ou r’s tim e, su b ject to m achine-controlled tim e. the lim itation s of Secon dly, it is neces becom e m achine-controlled elem ents, and when sary to determ ine the h ourly capacity o f the m a the tim e arrives w hen w e h ave fu lly a u tom atic chine. operations w ith the workers required solely for a t w hich it operates and from the tim e in each hour observation and a d ju stm en t purposes, the am ou n t during which it is n o t operating because the em 97.2 o f p a y w ill be based u pon units o f w ork T h a t capacity is com p uted from the rate ployee is perform ing som e physical w ork. capacity is reduced b y applied against the u n it value. W h y did the parties decide u pon 97.2 units? 8 T h is percent to com pensate for personal tim e, including lunch. W hen the I t cam e p a rtly from em ployee perform s his w ork so th a t the m achine th e fa ct th a t the sam e agreem ent established a achieves this “ adju sted ca p a city ,” he receives an I t w as a negotiated figure. m a x im u m on earnings. T h a t m a x im u m units of w ork per hour. is 95 In our opinion, the unit h ou r which should be established for m achine controlled tim e is th e full 95 units per hour before allowance for personal and lunch tim e. an allowance o f 10 I f then, percent were paid, the em “ allow ance” to be added to the units o f w ork w hich he has actu ally perform ed. bring h im up to Tw o 90 T h a t allow ance is to units o f w ork for the hour. alternate m eth od s for handling m ach in e- controlled operations are also spelled o u t in the agreem ent. O ne the m achine tion takes place. H ow ever, it w as a result o f T h e other will be used w hen circum stances require led 8 percent. accurately if negotiations units plus be a pply capacity th a t can n ot w ould p loy ee’s earnings w ould be protected as a u to m a predeterm ined. 90 a variable, rather th a n a fixed process allowance. P erhaps it w ould be well B o th m eth ods p rovide for adding to the em ployee’s to an agreem ent on to m ention the fa ct th a t the parties recognize earned u n it hour, to com pensate for the m ach in e- w h at a n y tim e-stu d y engineer will sa y , n am ely, controlled tim e. 57 IU D C o n fe r e n c e (2) operations; changing skills; ( 3) retraining; (4 ) seniority a d ju stm en ts; and ( 5) the effect on I m p a c t o f A u t o m a t io n F o rd -U A W h igh ly skilled trades classifications. on R a t e s a n d C la s s ific a tio n s R e la t io n s h ip s At and B uffalo plan ts ,1 which the D earborn were in existence when F ord began installing au K en Bannon and N elso n Sa m p * tom ated m achinery on a piecem eal basis, the U A W found it difficult to pin dow n the kind o f changes which required action and the n egotia tion o f the necessary new classifications and rates. I t w as also faced w ith the technical question re garding the im partial um pire's a u th o rity under the contract to determ ine (a) th at these were an Shortly after W orld W ar I I , F ord M o to r C o . expansion o f existing rates and classifications (and em barked upon an unprecedented expansion pro su bject gram . whether these were new classifications w ith new N o t o n ly did this program include the to the um pire's final ruling), and (b) rates (a strikeable issue). erection o f n ew buildings and the enlarging of T h e C leveland facility w as co m p letely n ew , and others, b u t wherever possible, the co m p an y elim inated the old m eth od o f m anufacturing and as the sem bling and in its place instituted new m eth ods bargaining agent. union had which em ployed autom ated devices in their then and classification agreem ent. m o st h igh ly developed stage. the U A W Ford been certified as the collective T h ere w as no negotiated rate T h e first m o v e o f D e p a rtm en t w as to prepare a w age su rvey o f the then-existing stam pin g plan ts. T o d a y , autom ation in these new or enlarged facilities includes: ( 1) T h e m o v em en t o f m aterials T h a t su rvey disclosed th at average h ou rly rates and parts from one operation to the n ext auto for production workers at the C leveland p lan t were 11 m a tic a lly ; (2) replacem ent o f m en in the opera abou t tion o f m achines b y devices called “ m ech an ism s” T h ere were three reasons for th is: (servo-m echan ism s); (3) replacem ent o f inspectors 1. b y control devices which inspect products auto were m a tic a lly ; (4 ) the use o f m echanism s which count, C leveland. 2. fill orders, m aintain inventories, reorder, give in cents an hour less than a t D earb orn . R a tes for sim ilar classifications, generally, 4% cents an hour lower, for the m o st part, a t W h ere there w as a rate range for a jo b , structions, and are designed with m em ories th at C leveland plan t workers were at the b o tto m o f the n ever fail (so lon g as the m achine is in repair); range, D earborn em ployees at the top. 3. and ( 5) au tom atic preventive m aintenance (like Similar w ork was classified differently at au tom atic lubricating system s which n o t on ly oil b o th plants. W h ere a jo b was on the borderline and grease au tom atically wherever oil and grease betw een tw o classifications at the C levelan d p lan t, the co m p an y had classified the worker in the low er are needed b u t also signal the need for repairs). payin g classification. T h e new m eth ods w ith the high ly developed A t D earborn , the worker a u tom ated devices were a far cry from the crude in a similar situation w as placed in the higher paid transfer m achines and the in-line m achine process classification. o f ju st a few years previous. T h e changes in m anpow er requirem ents, and ‘ D ire cto r an d Assistant D ire cto r, resp ectively, F o r d D e p a rtm e n t, U n ited A u to m o b ile , A ircraft a n d A gricultu ra l Im p le m e n t W ork ers o f A m erica, A F L -C IO . those y e t to com e, required that the U n ited A u to m obile W o rk ers union give careful attention to 1 A s a case s tu d y an d for illustrative purposes, w e h ave selected o u r experi ences in the F o rd stam pin g d iv isio n . P rior to F o r d ’s expan sion program , stam pings had been p rod u ced in the c o m p a n y ’s R o u g e plan t, Pressed Steel D iv is io n in D earborn , M ic h ., and also b y suppliers such as M u r r a y B o d y O orp . o f D e tro it. A s part o f its expan sion program , F o rd erected n e w s ta m p in g facilities at B u ffalo, N . Y ., C levelan d, an d C h icago H eigh ts, HI. m anpow er problem s and related issues, which for the purposes o f this paper included the follow in g: ( 1) rates and classifications for a u tom ated job s or Ju n e 1958 58 T o the union’s representatives m aking the sur stick to its previous position. B asically, it insisted v e y , it w as apparent th at autom ation and dow n th at, even th ou gh a series o f technological changes grading as a result of job dilution had gone h an d - in stam pin g processes had taken place in the last in-h and at the C leveland stam pin g plant (where 10 there w as a new w ork force generally inexperi enough to ju stify a sharp classification structure enced in factory operations). revision. T h e difficulties in years, actual jo b duties had n ot changed correcting this within the w age and classification A d d ition a lly , the co m p an y claim ed the D ea r sy stem fram ew ork, as unilaterally installed b y the born p la n t’s classification setup could be applied co m p an y prior to our recognition as the collective to the C levelan d unit and th at the union did n o t bargaining agent, were extrem e. have the right to strike. Therefore, the I t said th at after accept union decided to form ulate an entirely new wage ing and classification structure, and bargain for it. problem s concerning changes could be worked out T h is intention was m ade clear to the com p an y in the first bargaining session. the D earborn classification structure, any through negotiations and, if necessary, arbitration. D u rin g this m eet N egotiation s continued for another ing and those which follow ed, the union discussed 3 m on ths, w ith m eetings approxim ately once a w eek w ith th at part of our international union’s policy state the co m p an y m aking m inor concessions, b u t n ot m en t on autom ation which concerned classifica conceding the principle. tions and rates to fit an autom ated factory. tion and a strike vote (2,240 to N e x t, A fte r a strike authoriza 159) were taken it took up statem ents various Ford officials had b y the m em bership, progress becam e rapid. m ade abou t autom ation. F or exam ple, the com few days later, the negotiators reached an agree p a n y ’s vice president in charge o f m anufacturing, m en t which contained a new classification struc 1954, said in A u gu st ture and the higher wage rates. th at autom ation “ would act as a prod to our econ om y” in several w ays, one of w hich, he em phasized, would be labor to increase its earning power. “ by A T h e agreem ent w as a com prom ise. B u t, for the first tim e on such a broad scale in a n y la b o r- enabling . . . produc m a n agem en t contract, it recognized autom ation tion processes have becom e m uch m ore com pli in jo b classifications it covered. cated in agreem ent, while it did n o t a pply the classification tion. . . . O ur production people m u st be more the departm ents which use a u to m a T h e com prom ise of “ a u tom ation atten d an t or controller” to all job s sought b y the union, did, how ever, pin dow n h igh ly trained.” the basic principle sought b y the union. A d d ition ally, the union negotiators stressed the O ne other m a jor gain w as m ad e b y the union. sim ilarity betw een statem ents b y the union and those o f the com p an y. T h e y did this in an effort A lth o u g h an um pire previou sly h ad ruled th at to gain an agreem ent in principle th at autom ated “ creeping changes” plants require the negotiation of an “ autom ated enough to call th em “ new jo b s ,” the new contract wage classification structure.” recognized W h e n this phase of the negotiations w as con the do n o t m a k e jo b s different changed w ork done by press operators on the m a jor lines and b y workers in other classifications. cluded, the union asked the co m p an y to draw up a new job classification structure shaped specifi T h is recognition em phasized the need for T h is barring arbitrators and um pires from lay in g the request was based on the union’s belief th at the basis for the w age and classification structure for com p an y knew the extent of forthcom ing engineer the fa cto ry o f the future. ing changes at the plant far better than the union. trators should h av e no role in the determ ination of Y e t the proposal was rejected b y the co m p an y new classifications and w age rates resulting from which insisted th at the union su bm it a plan. auto m a tio n because there are no o b jective criteria. cally for an autom ated stam pin g plant. U m pires and arbi M eetin gs were held betw een the union’s nego In subsequent negotiations at F o r d ’s C hicago tiators, and workers in the plan t were interview ed. stam pin g plan t, the principle established w as given O u t o f these sessions cam e a proposal, w ith new wider application so th at m ore workers were co v ered. was presented to the com p an y. A greem en t it w as given application a t the B uffalo bargaining sessions, H ow ever, in the m an agem en t continued A n d in negotiations on the 1955 classification titles b u t w ith ou t wage rates, which stam p in g plan t. to $9 M a ste r C h a n g in g S k ills a n d R e tr a in in g tronic devices w hich h av e been developed since th ey acquired their training in their trades. A u to m a tio n in m a n y cases changes the nature o f the skill and training needed o n individual jo b s. S e n io r ity A d ju s t m e n t s T h e form er single spindle-drill operator or press operator n ow tends a b a tte r y o f m achines which B ecause operations in m a n y older plan ts h ave perform boring, ream ing, drilling, m illing opera been discontinued b y the co m p an y , the U A W has tions or blankin g, form ing, piercing, and flanging h ad to be alert to the effects o f such action on its operations. m em bers. A top F o rd spokesm an has stated I t has concluded transfer agreem ents to guarantee the right o f workers to transfer w ith th a t there are considerable changes in the kinds o f jo b th a t m en will do in th e fa cto ry o f the fu tu r e : their operations to a new plan t or an already exist “ T h e h an d trucker o f to d a y , replaced b y a con ing fa cility . v ey o r b elt, m ig h t becom e tom orrow 's electronics to provide the greatest possible protection in the engineer . . * exercise o f seniority rights. D rill press operators replaced b y as future to o lm a k e r s." T h is is m u ch easier to do in a new p lan t than an old one. a u to m a tic m u ltiple drill m achines could be trained C han ges such as these pose serious retraining problem s. I t has broadened seniority groupings I n June 1956, for exam ple, F o rd opened a new stam p in g p lan t in C hicago. T h e co m p an y In negotiations o f m u st provide opportunities fo r such training and N o v e m b e r o f th a t year, the U A W guarantee th a t our m em bers receive a livin g w age concluded negotiations on a w age and classifica during such period. tions agreem ent. T h rou gh negotiations w ith th e co m p an y , the UAW tiated has am ended its apprenticeship training successfully In con trast to the classifications o f w ork a t th e 315 nego D earborn plan t, which is the oldest stam pin g p lan t, as part program to provide an op p ortu n ity for the older o f a program for a broader exercise o f seniority, it seniority em ployees to obtain training through negotiated ju st such program s. C hicago plan t, even though b o th plan ts are com T h e applicants for such training were previously lim ited to those betw een 26 18 101 classifications o f w ork in the parable w ith respect to m eth ods and processes o f and m anufacturing. years o f age, b u t th a t has n ow been am ended I t has further provided for hiring to provide th a t a seniority em ployee, w ho can preference for laid -o ff F o rd workers o f other F ord pass plan ts before new hiring takes place. the necessary m ental and aptitu de tests satisfactorily, can m ak e application and will be eligible for such training, regardless of F o r the further protection o f m em bers in the m etropolitan age. D e tr o it area, the union has an areawide seniority A p p lican ts in this category are further protected agreem ent. b y being placed on a different w aiting list for entry in to such training. T h is rem oved the possibility E ffe c t o n H ig h ly S k ille d C la ssific a tio n s o f such high seniority applicants com p etin g for available training opportunities w ith the younger applicant fresh o u t o f school. W it h the introduction o f a u tom ation into the A d d ition a l points B uffalo stam pin g p lan t, the m an agem en t insisted based on len gth o f service are also awarded to th a t the com p lexity o f the equ ipm en t m a d e it such seniority em ployees, increasing the ratings m a n d ato ry, in view o f the needs o f the services o f w hich determ ine their standing on the w aiting list m a n y o f the trades, to break dow n the lines o f de for such training program s. m arcation betw een the skilled trades. A ccord I t is also necessary to provide for extended ad ingly, before the U A W w as recognized as the col van ced training program s for our workers who are lective bargaining agen t for this p lan t, the co m already w orking in the h igh ly skilled trades classi pany fications. equ ipm en t m a k er and m aintenance— wfcich ac M any UAW tradesm en as ju d ged are by h igh ly established a classification— au tom ation com p etent m echanics previous tu ally crossed seven recognized trades: diem aker, standards. T h e y becam e so as a result o f serving m achine repairer, m illw right, welder, hydraulic, a bo n a fide apprenticeship or b y a ctiv ely w orking on the jo b . pipefitter, and tinsm ith. T h e y need, how ever, to h av e further W hen the U A W obtained recognition, there training on the n ew ly developed m echanical, h y were already m a n y workers so classified and re draulic, ceiving the sam e rate as diem akers, w hich is the pn eu m atic, chem ical, electric, or elec 60 highest rate o f a n y o f the seven trades in volved. jou rn eym an standards becom es an increasingly In at im p ortan t union task in the face o f a u tom ation . tem p ted to get the support o f the m em bers to Success in the perform ance o f this task will require the subsequent negotiations, the union elim inate such classification and return the w ork the fullest cooperation o f the skilled trades workers to the basic skills b u t w as unsuccessful in view o f them selves, w ho m u st vigorou sly resist m an age the rate o f p a y th ey were enjoying. m e n t pressure to do w ork n o t properly a p art of their actual respective trades. A t C levelan d, the union faced an identical situ ation a t tim e o f recognition. ceived som e su pport fro m H ow ever, it re M a n a g e m e n t in F o rd insisted in the the m em bership af M a ste r A greem en t n egotiations 1955 U A W th a t the new fected and was able to elim inate th e classification classification as such. plants w ou ld n o t be effective a t the D ea rborn In this C levelan d p lan t, there is an structure and rates fo r stam p in g a u to m a tio n m aintenance d epartm en t w ith each plan t unless, worker classified w ithin his trade, alth ough the agreed th a t the au tom ation equ ipm en t m aker and rate is established for the departm en t as such. m aintenance A g a in , efforts to convince the affected workers o f T h e skilled tradesm en refused and were supported the deterioration o f skilled trades standards fell on b y the production workers, deaf ears. w ould h ave been eligible for an increase o f and the skilled classification I n the Chicago stam pin g p lan t, the U A W again cents an hour. faced the sam e problem a t tim e o f recognition. correct this in H ere, how ever, the m em bers affected were willing until, covered 50 tradesm en their jo b s. percent o f w h o m 5 to 15 T h e y will h ave an o p p ortu n ity to 1958 negotiations. I f successful, a drive to reduce the n u m ber of to fight to m aintain the standards o f the skilled jou rn eym en trades. skilled-trades classifications, w ould in ev ita b ly un T h e workers a t th at location are classified in accordance w ith skilled trades standards. by overlapping in the dermine the basic skills so th a t our econ om y w ould T h e defense o f the integrity o f the apprentice- be le ft o n ly w ith m en w ho are jack s-of-all-trad es and m asters o f none. a ble trades against overlapping and dilution o f em ployed, 6 1 In tern ation al L o n g s h o r in g a n d M e a t p a c k in g Lon gsh orem en ’s and W a reh o u se m en ’s U n io n th a t no addition al paym en t is due A u to m a t io n S e t t le m e n t s fo r changes m ade or to be m ade p rio r to June* 15, 1960. T h is p aym en t shall constitute a p a rt o f the consideration fo r renewal o f the contract, and E N o t e .— Two recent union-management agreements have contained clauses providing for a unique {though by no means identical) han dling of an old problem: the introduction of laborsaving equipment. One contract is between the International Longshoremen's and Ware housemen's Union ( Ind.) and the Pacific Mari time Association. The other involved two unions—the Amalgamated Meat Cutters and Butcher Workmen and the United Packinghouse Workers—and Armour and Co. The relevant clauses from these agreements are reproduced below. d it o r ’ s sh all be distributed to the fu lly registered w ork force in a m anner to be determ ined. B. period, to achieve and m eet the fo llo w in g aim s and o bjectives: 1. m achinery, of T o m aintain the actual changes in p a rag rap h 4. vacations. 5. duced m an pow er w ith the sam e or greater p ro du ctivity fo r an o p era tio n ; ( 2 ) o f savin gs to the ch a n g es; fu lly registered w ork ( 3) of contributions b y the em ployers, 1 hereof. T o p ro vid e th a t th is fu n d w ill be separate fr o m such 1958 such contributions to come fr o m savings described rules and contract restrictions, resulting in re of or T o create a coastwise fu n d fo r th at w ork force th rou gh ods o f operation, or proposed changes in w orkin g because operation, force, w ith allow ance fo r norm al attrition. m ade b y lab orsavin g m achinery, changed m eth em ployer of resulting in reduced m an pow er w ith the sam e or fo r the parties to fu rth er study and ( 1) m ethods greater prod u ctivity fo r an operation. 3. fa ctu a l experience changed changes in w orkin g rules and contract restrictions T o allow a certain am ount o f tim e (n o t more g ain T o guarantee the fu lly registered w ork force a share in the savings effected b y lab orsavin g 2. 1 y e a r) I t is the purpose and intent o f the parties, d u rin g the course, and as the result o f this study P M A - L o n g s h o r e m e n ’ s U n io n P r o v isio n th an (T a x and legal problem s to be resolved.) contractual w ages, pensions, w elfare, and T o guarantee the P M A the rig h t to m ake changes and rem ove restrictions, alon g w ith p r o a tection again st reprisals fo r m a k in g such changes proper share o f such savin gs to be fu n d ed as and h erein after p r o v id e d ; and ( 4 ) o f the m anner o f changes i f and w hen m ade. D u r in g the ensuing year, in addition to m a k in g distribu tin g such fu n d to th e fu lly registered w ork fo r c e : A. the contract of such in effect: (a ) tered w ork force, th rou gh contributions by the P M A w ill accum ulate th e $ 1. 5-m illio n fu n d as p rovided in A hereof. (b ) P M A sh all be free to m ake such changes em ployers to be accum ulated d u rin g the first en $ 1.5 as are deem ed necessary under section T h is am ount, in addition to “ bu yin g present longshore contract and section contract m illio n . under o f such stu d y, the fo llo w in g agreem ents sh all be P acific M a ritim e A ssocia tio n ( P M A ) p ro poses to create a coastwise fu n d fo r the fu lly regis su in g enforcem ent year, in the am oun t of 14 25 o f the o f the tim e” fo r necessary stu dy and experience, repre present C lerk s’ contract, restricted how ever, by sents a recognition b y the em ployers th a t savings the observance o f rules p ro h ib itin g individu al accrue as a result o f m echanization an d changed speedup and u n safe operations. m eth ods o f operation, and a recognition b y the m ent sh all continue. O c to b e r 1959 6 2 T h e loa d agree E x ce p t f o r changes in operations m ade here a fter b y in trod u cin g laborsavin g devices in addi tion to those already used and practiced b y h im in the past, the em ployer shall n ot invoke the p ro visions o f section 14 o f the L on gsh ore A greem ent o r section 25 o f the C lerks’ M aster A greem ent d u rin g the ensuing year. N or shall the em ployer seek a reduction o f ga n g sizes or num ber o f clerks, elim ination o f m u ltiple h andling, o r other exist in g contract o r w ork in g rule restrictions w ith re lation to operations now existing, except d u rin g future annual review negotiations o r b y mutual agreement. ( c ) T h e parties w ill continue negotiations on the matters outlined in this prop osal f o r a p eriod o f n ot to exceed 1 year f o r the purpose o f deter m in in g a basis f o r con vertin g the above fun d and em ployer contributions thereto to a continu in g basis w hich w ill meet the aims and objectives set fo rth herein. Such negotiations shall n ot ex clude tonnage taxes, m an-hour assessments, o r any other basis o f conversion, n or exclude con version o f present contributions f o r w elfare, pen sions, and vacations. ( d ) T h e parties shall continue to operate in accordance w ith the terms o f the contract and w ork in g rules, w ith m utual agreement against reprisals and f o r enforcem ent o f the contract, w ork in g rules, and the provisions o f this proposal. * * vested in the enterprise and providin g the assur ance o f continued em ploym ent fo r the em ployees under fair standards o f wages, benefits, and w ork ing conditions. Jobs are directly dependent upon m aking A rm ou r produ cts desirable to present and future custom ers from the view poin t o f quality and price. M echanization and new m ethods to prom ote operating and distributing efficiencies affect the num ber o f em ployees required and the m anner in w hich th ey perform their w ork. T echnological im provem ent m a y result in the need fo r developing new skills and the acquiring o f new know ledge b y the em ployees. In addition, problem s are created for em ployees affected b y these changes that require the jo in t consideration o f the com pan y and the unions. T h e com pany and the unions have in past agree m ents p rovided benefits to soften the effect o f som e o f these changes where em ployees are laid o ff or term inated. H ow ever, it is recognized that these problem s require continued stu dy to p rom ote em ploym ent opportunities for em ployees affected b y the introduction o f m ore efficient m ethods and technological changes. T h e com pan y, therefore, agrees w ith the unions to establish a fund to be administered b y a com m ittee o f nine, com posed o f four representatives o f m anagem ent and tw o representatives selected b y each o f the tw o unions and an im partial chair m an selected b y m utual agreement o f the parties. T h e m anagem ent and the unions shall each p ay for the expenses o f their respective representatives on the com m ittee, and the fees and expenses o f the im partial chairman shall be paid b y the fund. This com m ittee is authorized to utilize the co m pan y contributions to the fund for the purpose o f studying the problem s resulting from the m od ernization program and m aking recom m endations fo r their solution, including training em ployees to perform new and changed job s and prom otin g em ploym ent opportunities within the com pan y for those affected. T b e com m ittee should consider for appropriate action a program o f training qualified em ployees in the know ledge and skill required to perform new and changed jo b s so that the present em p loy ees m a y be utilized for this purpose to the greatest extent possible. T h e expenditures fo r such a training and retraining program m a y be author ized b y the com m ittee from the jo in t fund. T h e * I t is recognized that the em ployer has the righ t to select com petent men f o r all operations. W h en new types o f equipm ent are introduced in connec tion w ith the h an d lin g o f ca rgo covered b y the contractual definitions o f w ork, such new equip ment shall be operated b y em ployees under the I L W U contracts, w ith the understanding that com petent men shall be m ade available b y the I L W U , w ith adequate experience o r training. T h is p rop osal shall n ot change the status quo as to assignment o f other than I L W U men on exist in g equipment. Armour-Meatpacking Unions Provision I t is recognized that the m eatpacking industry is undergoing significant changes in m ethods o f produ ction , processing, m arketing, and distri bution. A rm ou r’s m odernization program is vital to its ability to com pete and grow successfully, thus providin g a reasonable return on capital in 63 com m ittee should also consider other program s such as transfer rights to plants covered b y the m aster agreements where jo b opportunities remain or are increasing, and should consider any other m ethods that m ight be em ployed to prom ote continued em ploym ent opportunities for those affected. I t is agreed, how ever, that the fund shall n ot be used to increase present severance p ay benefits. T h e findings and recom m endations o f the co m m ittee shall n ot be binding b y the parties, b u t shall be m ade to the com pan y and to the unions for their further consideration. T h e final report and recom m endations b y the com m ittee are to be m ade no later than 6 m onths prior to the term ina tion o f the contract. T h e fund to be utilized for the purposes set forth above shall be created b y com pa n y con tri 6U butions m ade in accordance w ith the follow ing form u la: T h e contributions shall be in an am ount equal to 1 cent fo r each hundredweight o f total tonnage shipped from slaughtering and m eat packing plants covered b y the m aster agreements. Such tonnage figures shall be based upon the periodical F o o d D ivision financial statem ents, and a m on th ly list o f such tonnage for the covered plants shall be presented to the jo in t com m ittee. T h e com p a n y’s tonnage figures shall be final and binding upon the parties. C ontributions shall term inate upon the total o f the co m p a n y ’s con tri butions reaching $500,000. (Procedure m ust be established for the disposition o f the balance o f m on ey rem aining in the fund.) A letter shall be exchanged betw een the parties setting forth the m ethod and the time for the m aking o f the aforem entioned contributions. Maintenance of Way Employment E N o t e .— This article is the first o f -two based on a study o f the problems o f insecurity and instability in maintenance o f way employment undertaken at the request o f the Brotherhood o f M aintenance o f W ay Em ployes} In the foreword to the complete work, Professor Sumner H . Slichter o f Harvard University states, “ The two most important things about this study are ( 1) that the Brotherhood insisted that it be the independent work o f the economists and that it represent their analysis o f problems and their evaluation o f pro posed policies, and (j?) that the study is being made available to all in the industry by being published” The union, he said, had “ provided an admirable example o f how to approach the problem o f policymaking when the issues are difficult and controversial” Part I I o f the study w ill deal with the seasonal and cyclical instability o f maintenance o f way employment. d it o r ’ s I — T e c h n o lo g ic a l D is p la c e m e n t in E m p lo y m e n t a n d P o s s ib le M o d e ra tin g M e a s u r e s W il l ia m H a b e r and M ark L. K ahn* clear that hundreds o f regular m aintenance o f w a y men face long-term or perm anent displacem ent every year fo r the foreseeable future. T h e in security caused b y this g loom y ou tlook is aggra vated b y the existence o f severe cyclical and seasonal em ploym ent fluctuations w hich greatly exceed the actual short-run variations in physical maintenance o f w a y requirements. T r a n s p o r t a t io n a c t iv it y in the U nited States has m ultiplied severalfold during the last few decades. T h e railroad industry has n ot shared proportionately in the resulting opportunities, however, because o f increasing com petition from passenger cars, buses, trucks, aircraft, and pipe lines. Gross ton-m iles carried b y rail have in creased b y on ly abou t one-fourth since the 1920’s. (See chart.) M eanwhile, technological progress has tripled the p rod u ctivity o f m aintenance o f w ay em ployees. A s a result, m aintenance o f w a y em ploym ent has fallen b y m ore than 50 percent since the 1920’s to its present level o f 170,000, com pared with a decline o f approxim ately 39 percent in total railw ay em ploym ent. Since W orld W ar I I , the num ber o f m aintenance o f w a y job s has dropped an average o f 680 per m onth. W e are n o t aware o f any other m ajor category o f workers— even in som e acknow ledgedly “ sick” industries— in which em ploym ent cu t backs have been so persistent and so drastic. T h e prospective rate o f decline is less severe than during the recent past. Nevertheless, it is O c to b e r 1957 S om e E ffects o f T echnological Progress Aggregate industry data tend to conceal the fact that the degree and rate o f technological change varies greatly am ong the different railroads. M a n y aspects o f the adjustm ent to changes in equipm ent and m ethods m ust be dealt with on the p roperty at the tim e innovations are being effected. ♦Professor of Economics, University of Michigan, and Associate Professor of Economics, Wayne State University, respectively. 1 William Haber; John J. Carroll, Associate Professor of Economics, St. Lawrence University; Mark L. Kahn; and Merton J. Peck, Assistant Professor of Business Administration, Harvard University, Maintenance of Way Employment on U. S. Railroads—An Analysis of the Sources of Insta bility and Remedial Measures (Detroit, Brotherhood of Maintenance of Way Employes, 1057). 65 Traditionally, m ost m aintenance o f w a y opera tions were perform ed b y section gangs, w ith each section gang responsible for a specified portion o f the right o f w ay. M echanization encourages the perform ance o f h eavy m aintenance b y specialized, m obile w ork gangs capable o f using the expensive new equipm ent efficiently and econom ically. T h e territory to be covered m ust be divisional or even system wide before the use o f som e kinds o f equipm ent can be econom ically justified. T h e use o f specialized gangs for h eavy m ainte nance often leads, in turn, to a reduction in the num ber o f section gangs, to an increase in the length o f sections, and to the use o f section gangs largely for policing and inspection purposes only. E m ployees w ho are assigned to the m echanized gangs are characteristically required to spend con siderable periods o f tim e livin g aw ay from hom e in trailers or cam p cars. Gross Ton-Miles per Maintenance of W ay Employee, Class I Railroads in the United States, Selected Years, 1922-56 Gross Ton-Miles Number of Maintenance of Way Employees Shorter Hours of Work C an a shorter workw eek m ake a helpful contri bution to maintaining em ploym ent in m aintenance o f w a y departm ents? T h e 40-hour week has prevailed in the U nited States for abou t tw o decades. On the railroads, how ever, the 40-hour w eek was n ot established until 1949, when the standard workw eek was reduced from 48 hours w ithout loss o f w eekly pay. This achievem ent m eant an increase o f 20 percent in the hou rly rate o f pay. E arly efforts to obtain shorter hours em pha sized the desirability o f greater leisure to offset the physical strains o f w ork and to perm it selfim provem ent and better fam ily life. T od a y, because there has been a substantial relative increase in nonw ork time, additional leisure is no longer the m ajor consideration. A ctually, there is evidence that where sufficient w ork op por tunities are present, workers and unions usually prefer additional incom e to additional leisure.2 O nly when technological or econ om ic d evelop m ents threaten to displace substantial num bers o f regular em ployees are unions likely to press vigorously for shorter hours (provided there is no loss in w eekly p ay) as a countermeasure. E xcep t am ong office workers (who are pre dom inantly fem ale and unorganized) on ly nom i- A lthough a strong case can be m ade for nation wide rules o f procedure, and for the developm ent of general principles o f adjustm ent, it is essential to retain flexibility in substantive m atters at the level o f the individual railroad and the cor responding (system ) organization o f the B rother h ood o f M aintenance o f W a y E m ployes. Tech n ological progress has a qualitative as well as a quantitative im pact on m aintenance of w ay em ploym ent. M echanization o f operations pre viou sly perform ed b y laborers with simple handtools creates new occupations associated with the operation and the m aintenance o f the m achinery and raises the average skill level. 2 See History of Union Efforts to Reduce Working Hours (in Monthly Labor Review, November 1956, pp. 1271-1273). 66 nal progress has been m ade in the U nited States tow ard a w orkw eek o f less than 40 hours. A recent Bureau o f L a b or Statistics survey o f 17 areas 3 foun d 46 percent o f office workers bu t on ly 7 percent o f plant workers on regular schedules o f below 40 hours per week. T h ose significant examples w hich can be found o f standard workweeks below 40 hours are am ong h igh ly paid and cohesive skilled groups (printing and building trades); in fields where fem ale em ployees predom inate (office workers, ladies’ gar m ent w orkers); and in response to im m inent or actual technological displacem ent (m echanized bakeries, brewing industry). I f w eekly p a y is m aintained while hours are cut, there is an increase in the hou rly w age rate. Pre sum ably, a similar increase m ight have been granted w ithout a n y reduction in hours, thus increasing w eekly p a y for those w ho remained em ployed. H ence, to offset technological dis placem ent b y shortening the w orkw eek w ould, in these circumstances, be a device b y which the m a n y are m ade to suffer losses in earnings in order to benefit the few whose job s are saved. P rom a com m u n ity poin t o f view, as well as from the poin t o f view o f the em ployee m ajority, the use o f shorter hours to counteract perm anent reductions in em ploym en t is particularly undesirable during periods o f prosperity, when nonrailroad alterna tives are m ore readily available. “Freezing” Employment A n y com m itm ent b y a carrier to guarantee a m inim um proportion o f total em ploym ent for m aintenance o f w a y jobs, or a m inim um absolute num ber o f m aintenance o f w a y jobs, if obtainable, w ould in our ju dgm ent p rove to be largely super fluous or futile. A specific exam ple o f this “ freeze” approach was contained in Proposal I o f the 1950 E m p loym en t Stabilization Program o f the B rother h o o d : that, on each carrier, the average em ploy m ent in each m aintenance o f w a y class should n ot fall below the num ber required to m aintain the same ratio to total carrier em ploym ent as the average ratio during the 1940-49 decade. Such a guarantee, if given, m ight lead to some enlargem ent o f w ork opportunities in light o f the tendency o f m aintenance o f w a y em ploym ent to decline as a proportion o f total railroad em p loy m ent. I t could, for example, encourage the m akeup o f deferred m aintenance and the post p onem ent o f laborsaving innovations. m ight discourage contracting ou t. On the other hand, it m ight sim ply com pel the carrier to em ploy (or p a y) m ore m en than it can econom ically use. This kind o f guarantee w ould, in our judgm ent, unwisely im pede technological progress. Further m ore, any particular base period w ould give the already highly m echanized carrier a perm anent advantage and w ould tend to discriminate against those carriers that have encountered m ore difficult W hile it is likely that shorter hours w ould m ean the retention o f a som ewhat larger num ber o f individuals on the payroll, the extra em ploym ent m a y in the long rim fall well short o f the theo retical m axim um because o f offsetting econom ies. Th is was the case am ong m aintenance o f w ay em ployees after th ey obtained the 40-hour week in 1949. T h e change from the 48-hour to 40-hour w eek in 1949 led to a small increase in m aintenance o f w a y em ploym ent in 1950 and 1951. In a short time, however, em ploym ent declined sharply, falling from 256,000 in 1948 to 184,000 in 1954. This steep decline suggests that the adven t o f the 40-hour week, with its higher hou rly lab or costs, m a y have provided an additional stimulus to m echanization. * See Wages and Related Benefits, 17 Labor Markets, 1955-66, BLS Bull. 1188 (1956), table B-3, p. 54; see also Scheduled Workweeks and Shift Dif ferentials in 17 Labor Markets (in Monthly Labor Review, November 1956, pp. 1295-1299). T h e econ om ic characteristics o f the railroad industry and the personal characteristics o f m aintenance o f w ay em ployees suggest that it is n ot advisable or practical fo r the B rotherhood to “ lead the parade” to shorter hours, n or is it likely that the railroad brotherhoods as a w hole will w ant to establish a shorter w orkw eek before it has becom e a prevailing practice in the com m u nity at large. O ver a period o f ye$rs, the m aintenance o f w ay em ployees, in com m on with all workers, will naturally participate in and benefit from a con tinuation o f the historical trend to shorter hours. Leisure is part o f the A m erican standard o f living and is an appropriate end in itself. W e should n ot confuse shorter hours as a means to leisure w ith shorter hours as a means to lim it u n em ploy m ent. B oth objectives can be borne in m ind as p o licy is shaped. 67 econ om ic circum stances. I f applied on the basis o f each o f the 16 m a jor jo b categories, as proposed, it w ou ld serve to bar m an y o f the unavoidable (and largely desirable) occupational changes that m ust accom pan y m echanization. I f it m aintained jo b s b y postpon in g innovations, it w ould likewise delay the benefits o f progress for m an y em ployees, such as a higher general level o f wages and a larger proportion o f better and safer job s. W e recognize the appeal o f such a direct ap proach, as well as the rationale that m aintenance o f w a y em ploym ent ought n ot to suffer relatively m ore than other classes o f railroad em ploym ent. N evertheless, w e cannot believe that agreements to freeze the status quo, in either absolute or proportional terms, offer a realistic device for achieving stabilization objectives. Such agree m ents are unacceptable to the em ployer because o f the arbitrary restrictions thereby placed upon managerial decisionm aking. T h e y are n o t in the p u blic interest because th ey m ight retard desirable reductions in the cost o f railroad transportation. There is little likelihood th at a public appraisal (for example, b y an E m ergen cy B oard created under the R ailw ay L a b or A ct) w ould elicit the kind o f response needed for their obtainm ent. Finally, such agreements are likely to b e selfdefeating, given the elastic dem and for rail trans portation, since keeping costs up w ould cause a further loss o f business to com peting form s o f transport and an accom panying loss o f em ploy m ent. R ather, b y the use o f measures such as those exam ined b elow , carriers cou ld m ake decisions concerning the nature and tim ing o f innovations in light o f the full costs and on a basis that w ould m axim ize the equities w hich em ployees have in their railroad job s. F or those w h o rem ain em p loyed , job s will becom e, on the average, m ore skilled, better paid, and less unstable. sure (2) that the proper individuals are chosen fo r the opportunities created b y the innovation and have access to the necessary training; (3) that appropriate adjustm ents are m ade in jo b classifi cations and in the rates o f p a y for new jo b s ; (4) that workers are adequately com pensated for any deterioration in jo b conditions, such as service aw ay from h om e; (5) that m aintenance o f w ay men be considered for any available em ploy m en t in other railroad departm ents; and (6) that the m en w ho are displaced have adequate com pen sation.” L e t us examine each o f these m atters in turn. P rior Notice and Joint Consultation . G o o d con tract adm inistration is essential for effective adjustm ent to new m achines and m ethods. In general, the existing collective bargaining agree m ents betw een the B roth erh ood and the carriers already m ake the rates for new positions a m atter for negotiation. E ffective negotiation ordinarily requires adequate notice o f contem plated changes and the holding o f conferences before the changes are instituted. W h en decisions cannot be m ade in advance, their ultim ate application should be fully retroactive. M a n y roads already practice prior n otice, either form ally or inform ally, and on som e carriers there is thorough consultation w ith the general chair m an o f the B roth erh ood. U nfortunately, our investigations also indicate that on m an y carriers it is n o t unusual for new equipm ent to be intro duced w ith ou t any notice, and fo r protracted delays to ensue before p a y rates and other con di tions are determ ined. A collectively bargained national rule governing prior n otice and jo in t consultation on changes in m achines and m ethods m ight p rove an effective w a y to raise the average practice tow ard the level o f the best w ith ou t interfering w ith system -level decisions on m atters o f substance. A Positive Approach to Technological Change A ccess to New Occupations. M aintenance o f w ay em ployees should have a preferential op portu n ity to qualify for new types o f jo b s in m aintenance o f w a y departm ents. Training fo r em ployees w h o can qualify in a “ reasonable” period should b e a t com pa n y expense. T his principle has am ple precedent in industrial relations practice. T h e definition o f “ reasonable” m ust evolve from negotiations, often on a case-by-case basis. F rom the point o f view o f the B rotherhood, effective im plem entation o f its stabilization o b je c tives requires an approach to technological change that m ight be outlined in this fashion: “ B efore a new m achine or m ethod is introduced, we w ant (1) n otice that som ething is going to happen that m ay affect our people, and an op portu n ity to confer w ith m anagem ent abou t it. W e also w ant to m ake 68 I t w ould b e affected b y the qualifications o f cur rent em ployees in relation to the new jo b require m en ts; b y the am ount o f training outsiders w ould require; b y the full costs o f displacing regular em ployees; and b y the costs and length o f train ing. In general, the underlying value o f a railroading background should n ot be under estim ated. E xperience to date suggests that m ost carriers have had n o difficulty in recruiting com peten t operators for even the m ost com plex m echanical equipm ent from the m aintenance o f w a y ranks. E xtensive training is n ot generally required for “ operator” classifications. H ow ever, the m ainte nance o f com plex equipm ent m a y often require a longer period o f specialized training. Job Reclassification. O rderly wage administra tion requires the p rom pt reclassification and rerating o f changed job s or new types o f jobs. Our investigations indicate that on m an y carriers these actions are n ot taking place or occu r on ly after lon g delays. M a n y “ laborers” appear to be operating machines. In addition to new operating and m aintenance classifications, special attention should b e given to forem an and assistant forem an positions. (These tw o classifications are represented b y the B rother h o od .) T h e forem an o f a specialized and m echa nized gang that operates on a district, divisional, o r system w ide basis holds a jo b that is m arkedly m ore responsible, and dem ands m ore breadth and skills, than the traditional track forem an position. M oreover, the structure and operations o f m any o f the specialized gangs warrant in m an y cases the creation o f an assistant forem an position. This has already taken place on som e carriers. Compensation fo r Deterioration in W orking Condi tions. T his is too obviou s a p oin t to be belabored. I f m en have to spend substantial periods aw ay from hom e, livin g in trailers or cam p cars, as a result o f their em ploym ent in specialized gangs, the associated discom forts are in the carrier's interest. A ppropriate com pensation, perhaps in the form o f per diem travel allowances, should be p rovided where it does n ot already exist. Such allowances, like the other costs o f innovation dis cussed in this section, should b e system atically anticipated b y the carrier when innovations are being planned. 69 Preferential H iring . E m ployees w h o m ust be separated from their regular m aintenance o f w ay jo b s should be given preferential access, on an orderly basis, to any opening in other departm ents o f the same carrier or in any departm ents o f other carriers. Such opportunities are n ot often avail able because o f the general dow ntrend in railroad em ploym ent and because furloughed men from other departm ents naturally have the priority on openings in those departm ents. W e are aware, how ever, o f specific instances in w hich preferential em ploym ent has served to keep m aintenance o f w a y men in railroading while reducing the cost o f unem ploym ent insurance. W hen a jo b op portu n ity in another departm ent represents an advancem ent, arrangements should be encouraged w hich w ould perm it qualified m aintenance o f w a y m en to b id fo r the position on a seniority basis and w ith appropriate safe guards. W hen any m aintenance o f w a y m an takes a position in another departm ent he creates an op portu n ity fo r a laid-off em ployee to return to w ork. Dismissal Compensation. M o s t o f the N ation 's railroads and the 21 m a jor railroad unions entered in to the W ashington J o b P rotection Agreem ent in 1936. Th is agreem ent provides dismissal allow ances to em ployees w h o are term inated as the result o f a coordination (consolidation). These allowances continue for periods o f up to 5 years, depending on length o f past service, and equal 60 percent o f previous regular m on th ly com pensation. A lso, em ployees w ho are shifted to low er paying job s, as the result o f a coordination, are paid the full difference fo r 5 years, while em ployees w ho incur m ovin g expenses o r residence p rop erty losses are reim bursed b y the railroad. In 1940, Congress am ended the Interstate C om m erce A c t so as to require the Interstate C o m m erce Com m ission to im pose em ployee p rotective conditions in con nection w ith mergers so th at em ployees w ould n o t be left in a “ worse con d i tion ” for 4 years (or a period equal to the indi vidu al's previous service, if less). Similar co n ditions were im posed b y the IC C in 1944 fo r the benefit o f em ployees adversely affected b y an abandonm ent. Thus, as the result o f collective bargaining and public p olicy, p rotection o f em ployees w ho are adversely affected b y consolidations and abandon- men ts has becom e a firm ly established practice in the railroad industry. Is it reasonable that when a regular em ployee loses his jo b for other reasons beyon d his control— such as technological change— he should n ot be eligible fo r similar p rotection ? D u rin g the 1930’s, consolidations were the m a jor source o f jo b loss fo r long-service em ployees. I t was natural that special remedies should have been devised to m eet that problem . T oday, technological displacem ent takes first position and dem ands rem edial action. A ctu ally, a consistent and equitable scheme o f dismissal com pensation requires the same benefits for any given class o f em ployees, regardless o f the cause o f their perm a nent separation, provided on ly that the jo b loss is n ot the fault o f the em ployee.4 R ecogn ition o f this principle is contained in a recent agreem ent between the Chesapeake & Ohio R ailroad and the B rotherhood o f R ailw ay Clerks dealing w ith the establishment o f a new U nivac com pu ter center: It is hereby agreed to adopt and apply the beneficial provisions of the so-called Washington Agreement of May 1936 to all employees adversely affected as a result of their work being placed in the Computer Center from time to time so as to provide similar treatment and bene fits to those which would have been provided or accorded had the work gone into the Computer Center from two or more carriers and thus constituted a coordination as that term is used and defined in the so-called Washington Agreement. T h e specific provisions o f the W ashington A gree m ent, the 1940 am endm ent to the Interstate C om m erce A ct, and other established precedents, are certainly n ot sacred. T h e y do provide, h ow ever, a useful basis for the developm ent o f a m utually acceptable form ula. T h e alternative to a privately established solu tion is p rob a b ly one that is legislatively im posed. T h e H arris bill (H. R . 4353, 85th C on g., 1st sess., introduced February 5, 1957) represents an effort in the latter direction b y w ay o f an extension o f benefits p rovided under the R ailroad U n em ploy m ent Insurance A ct.5 T h e collective bargaining route is preferable if m utually satisfactory agree m ents can be reached. 70 Summary T h e follow ing measures, then, constitute in our ju dgm ent the avenues along w hich a practical p ro gram can be developed to deal with the perm a nent jo b displacements arising ou t o f changes in m achinery and m ethods and the econom ic status o f the industry: (1) N otice b y the carrier and union-m anagem ent consultation prior to the intro duction o f new m ethods or m achines; (2) prefer ential status for current m aintenance o f w ay em ployees for access to new positions in m ainte nance o f w ay departm ents and in other depart ments and for necessary training on com pa n y time and at com pan y expense; (3) effective and prom p t reclassification and rerating o f new job s, b y join t n egotiation; (4) com pensation for any deterioration in jo b conditions; (5) preferential reem ploym ent rights and training in other crafts and classes and also on other carriers for regular m aintenance o f w ay men who have been displaced; and (6) displacem ent com pensation or severance p ay— extending the precedents that have been established in connection with consolidations and abandonm ents— for all regular m aintenance o f w a y em ployees whose perm anent separation (through no fault o f their own) cannot be avoided. B asic to this approach is an acceptance o f tech nological progress and a recognition o f its values for the com m unity, the industry, and the em p loy ees themselves. In the long run, such acceptance requires an adjustm ent process that is accepted and understood b y all parties and equitable p ro tection or com pensation for those individuals w ho becom e the casualties o f progress. *For further discussion, see Dismissal Pay Provisions in Major Bargaining Agreements (in Monthly Labor Review, June 1957, pp. 707-712). *In addition to the (roughly) 26weeks of benefits currently provided under railroad unemployment insurance, the Harris bill would give long-servioe employees who had exhausted regular benefits and who did not voluntarily leave work without good cause or voluntarily retire the following extended benefits: Years of service 5and less than 10_.................................................... 10and less than 15..................................................... 15and less than 20..................................................... 20and over........................ -.................................... Number of 14day periods of extended benefits 39 65 91 117 Maintenance of Way Employment E d it o r ’ s N o te .— This article concludes a two-part summary o f a study 1 under taken at the request o f the Brotherhood o f M aintenance o f W ay Employes and covering problems o f insecurity and instability in maintenance o f way employment. Part / , which dealt with the long-run employment decline and possible moderating measures, appeared in the October 1957 issue. I I —Cyclical and Seasonal Instability and Possible Remedial Measures W i l l ia m H aber and M ark L. K ahn* S e v e r e cyclical and seasonal fluctuations in main tenance o f w ay em ploym ent aggravate the uncer tain ty and insecurity generated b y the continuing long-run decline. Cyclical and Seasonal Variations A substantial proportion o f physical m ain tenance o f w a y requirements is independent o f variations in railroad traffic. One m ight therefore presume that m aintenance o f w a y em ploym ent w ould exhibit less cyclical instability than railroad em ploym ent as a whole. A ctu ally, how ever, in com parison to other railroad em ploym ent, m ain tenance o f w ay em ploym ent has been abou t 50 percent m ore sensitive to cyclical fluctuations. In fact, it is n ot unusual for the am plitude o f these cyclical fluctuations in the num ber o f m aintenance o f w ay job s to exceed the concurrent relative changes in railroad traffic. U nlike m ost other aspect o f railroad operations, deferral o f m any types o f m aintenance is feasible within wide lim its w ith ou t im m ediately endanger ing safety. M oreover, under present accounting procedures prescribed b y the Interstate C om m erce C om m ission, deferral o f m aintenance im proves the apparent econ om ic position o f the carrier. C on sequently, deterioration in the cash position o f a carrier can be offset, accountingwise, b y a dow n ward revision o f m aintenance schedules. November 1957 A managerial p olicy o f using m aintenance o f w a y outlays as a balancing item in annual railroad budgets does appear to be responsible for som e o f the cyclical sensitivity in m aintenance o f w ay em ploym ent. In effect, short-run accounting and financial considerations often take priority over stability in m aintenance o f w ay operations. O ver the long run, haphazard tim ing o f m ain tenance involves real costs. T h e prospects for cyclical stabilization are brightened b y the fact the railroad managem ents are giving increasing recognition to this fact. Som e railroads, to achieve m axim um efficiency and econ om y on a long-run basis, are already— . . . performing renewals (on given sections of track) at fixed intervals of time according to the probable life of existing materials in track and working toward a track condition in which most material will reach the end of its probable useful life at the end of a cycle.2 This typ e o f farsighted practice based on cycles o f presum ptive physical depreciation is inconsistent ♦Professor of Economics, University of Michigan, and Associate Professor of Economics, Wayne State University, respectively. i William Haber; John J. Carroll, Associate Professor of Economics, St. Lawrence University; Mark L. Kahn; and Merton J. Peck, Assistant Pro fessorof Business Administration, Harvard University, Maintenanceof Way Employment on U. S. Railroads—An Analysis of the Sources of Instability and Remedial Measures (Detroit, Brotherhood of Maintenance of Way Employes, 1957). *Lloyd J. Kiernan, Application of Modem Scientific Research on Rail roads of the United States (in Transport and Communications Review, Vol. VII, No. 3,1954, p. 29). 71 Employment of Maintenance of W ay Workers a s Percentage of 12-Month Moving Average, 1950-55 cyclical fluctuations, there seems to b e a com m on managerial practice o f adjusting m aintenance outlays to changes in operating revenues. On m an y carriers, operating revenues exhibit con siderable seasonal variation. I t is n ot unusual for an annually con ceived m aintenance budget to give w ay before a tightening cash position and deteriorate to a m on th ly or even w eekly level o f com m itm ent. E fforts to reduce seasonality m a y involve certain types o f cost increases, such as the loss o f som e w orktim e because o f inclem ent weather or the use o f additional m an-hours when som e kinds o f w ork are perform ed under unfavorable condi tions. On the other hand, greater stability holds ou t the prom ise o f substantial offsetting economies. Prospects for Stabilization w ith fluctuating m aintenance activities based on short-run accounting m otivations. A b o u t one-fifth o f the m aintenance o f w a y jo b s that are present during the m idsum m er peak disappear b y the m idw inter low . (See chart.) Aggregate data conceal the fa ct that for m an y m aintenance o f w a y em ployees the seasonality p roblem is even m ore serious because seasonal variation is m uch greater on som e carriers than on others, and the brunt o f the instability is borne b y the section and extra gang trackm en— about 60 percent o f all m aintenance o f w a y em ployees— fo r w hom a full one-third o f sum m er peak jo b s are lost b y m idwinter. Since m aintenance o f w ay w ork takes place alm ost entirely ou t o f doors, weather conditions are certainly a factor in its seasonality. Tradi tionally, adverse weather has been regarded as the m ajor culprit because o f the difficulties (real or assumed) o f perform ing som e kinds o f operations in winter. C old and snow y weather is n ot a significant problem on southern carriers, how ever, while officials o f northern carriers have expressed w idely divergent views abou t the feasibility o f winter track m aintenance. T h a t some authorities have found th at m any types o f m aintenance are practical under northern winter conditions suggests that custom and inertia m ay accou n t for the extent to w hich winter layoff practices persist. Our analysis suggests, in fact, that on m any carriers the m ajor source o f seasonality is other than clim atic. A s noted in connection with 72 There are grounds for optim ism abou t the design and adoption o f practical measures fo r coping effectively w ith the cyclical and seasonal sources o f instability. G iven the fa ct that the underlying m aintenance needs, in “ real” terms, are fairly stable, the carriers could realize significant ad vantages from stabilization which should largely offset a n y costs associated directly w ith the im plem entation o f a stabilization program . These advantages m a y b e outlined as follow s: (1) stabilization will mean reduced labor turnover, less reliance on inexperienced workers, a higher average quality o f personnel, and im proved em ployee m orale; (2) long-range scheduling o f m aintenance based on the presum ptive physical life o f materials is m ore econom ical than the traditional practice o f repair or replacem ent on ly as testing shows the individual item to be d efective; (3) the gains derived from stabilization are en hanced b y the continuing increase in m echaniza tion, since stabilization facilitates full utilization o f expensive capital equipm ent; (4) m aintenance o f w ay w ork is cheapest when traffic is lightest, although current practice tends in the opposite direction because o f the correlation betw een m aintenance and operating revenues; and (5) stabilization will reduce the cost o f railroad unem ploym ent insurance. R em edial measures m a y be classified under tw o headings: (1) positive steps to stabilize the avail ability o f w ork and (2) protective measures for em ployees. Positive Stabilization Measures In connection w ith b oth m aintenance budgetin g and the functional rescheduling o f specific opera tions, it is worth emphasizing that the v ery defer m ent o f m any kinds o f m aintenance o f w a y w ork w hich has been a m ajor source o f instability can be redirected so as to m ake a positive contribution to stable em ploym ent b y scheduling such w ork during slack periods. E ffective annual m aintenance budgets, firm ly com m itted and based on long-term physical maintenance program s, w ould certainly m ake a m ajor contribution tow ard stabilization and w ould appear to m ake good sense from a carrier point o f view. A few railroads have already dem onstrated this in practice. O f course, m aintenance budget ing per se is a m anagem ent function, and it m a y n ot be the business o f the B rotherhood o f M ainte nance o f W a y E m ployes to negotiate with carriers abou t such matters. On the other hand, it is w h olly appropriate for the B rotherhood to advise the carriers that the personal budgets o f its m em bers are being upset b y the consequences o f their prevailing m aintenance budget practices. A part from the econ om ic sources o f short-term instability, there is the problem of subfreezing or inclem ent weather. This appears to b e a sig nificant obstacle to seasonal stabilization, chiefly on northern carriers. On the basis o f w hat some carriers have achieved, it seems likely that addi tional progress can be m ade b y rescheduling specific m aintenance activities so as to leave for cold or bad weather as m uch as possible of the particular kinds o f w ork that can be econom ically perform ed under such conditions, and shift workers to locations where other available w ork can be carried out. Ballast cleaning, for example, generally becom es im possible after a week o f subfreezing weather, b u t such activities as laying new rail, rail m ainte nance, and burning brush on the right o f w ay can be con du cted efficiently in v ery cold temperatures. W hen carriers have a significant north-south spread in their route patterns, then specialized gangs m ight concentrate on the southerly segments during the winter m onths. In this w ay, clim atic variation can be a source o f jo b stability, although at some real cost in altered w orking conditions. A tten tion should also be given to possibilities o f tim ing small-scale capital renewal or new capital p rojects so that they m ight function in a counterseasonal and even a countercyclical manner. Joint (union-m anagem ent) stu dy o f short-term instability problem s, carried ou t at the system level, should p rove helpful on m any carriers in developing specific solutions that fit the particular conditions involved. Protective Measures T h e p rotective measures which are adopted should enhance the established railroad unem ploym en t insurance program so as to p rovide m axim um com bined protection fo r any given addi tional cost, and they should also encourage m an agements to take effective positive steps tow ard em ploym ent stabilization. M inim um M onthly Employment Quotas or Ratios. Th is typ e o f measure was advocated b y the B rotherhood o f M aintenance o f W a y E m p loyes as Proposal I I o f its 1950 E m p loym en t Stabiliza tion Program . Specifically, the B roth erh ood asked th at: The ratio of employees in each major [maintenance of way] class . . . to the total number of railway employees employed by the carrier for each calendar month after the effective date of this rule shall not be less than the average ratio between such forces for the same calendar month of the 10 years 1940- 49, inclusive. This proposal raises questions analogous to those suggested in our evaluation o f Proposal I o f the B M W E 1950 E m p loym en t Stabilization Plan.3 I t w ould obstru ct technological change b y pre venting occupational realinement within m ainte nance o f w a y departm ents and b y im posing m ini m um em ploym ent requirements unrelated to changing needs. I t w ould freeze, on each carrier, the particular average seasonal pattern which the carrier happened to experience during the base period chosen. I t im plicitly accepts as satis fa cto ry the base period seasonal variation. B y requiring high em ploym ent during the (base period) seasonal peak, it w ould render im possible a program for stable annual em ploym ent even at a level corresponding to the base period annual average. M inim um Individual W ork Guarantees. A differ ent line o f attack on seasonal instability is to give a guarantee o f em ploym ent or p a y to the 1See Part I of this article, p. 67. 73 I I n oted earlier, it w ould b e quite im practical to com bine Proposal I I and Proposal I I I as p ro posed in 1950 b y the B rotherhood. individual worker. T h e third and last proposal p u t forw ard in the 1950 B M W E Stabilization Plan was o f this ty p e: Each employee who holds employment within the first pay period in January of any year after 1950 shall be guaranteed full employment for the 12 months of that year; each additional employee employed at any time after the end of the first pay period to and including March 15 shall be guaranteed full employment for 8 consecutive months; each additional employee employed after March 15th to and including April 15th shall be guaranteed full employment for 6 consecutive months; and each additional employee employed after April 15th of any year shall be guaranteed not less than 4 consecutive months of full employment . . , T h e guarantees proposed above w ould n ot apply in cases in volvin g volu n tary leaving o f em ploy m ent, requested leaves o f absence, retirem ent, disability, or death. This is the “ call-in p a y ” app roach : “ Y o u d o n 't have to em p loy m e, b u t if y o u do, I h ave som e m inim um w ork o r p a y com ing to m e.” T his typ e o f provision im poses n o particular em ploym ent m inim um on a carrier. I t does create a substantial potential liability w hich m aterializes on ly w hen a carrier fails to provid e an individual w ith the duration o f steady em ploym ent w hich is pre scribed. I t costs a carrier nothing, at least directly, if em ploym ent is stabilized within the specified individual m inim um s. W hile n ot necessarily endorsing the specific guarantee schedule o f Proposal I I I , w e suggest that this kind o f measure merits serious consideration as a means o f p rovid ing som e assurances to em ployees and som e new em ploym ent stabilization incentives to carriers. T h e im pa ct o f Proposal I I I , in con ju n ction with Proposal I I , could be intolerably expensive. U nder Proposal II, som e given num ber o f em p loyees w ould h ave to be on the payroll as o f the seasonal peak. O nce hired, the individual guar antee o f at least 4 m onths o f em ploym ent w ould go in to force. Since large proportions o f m ainte nance o f w a y m en h ave characteristically w orked in on ly 1, 2, or 3 m onths during the sum m er peak, Proposal I I I w ould require carriers to give such men m ore w ork or p a y than during the base period experience. A pa rt from the criticisms o f Proposal Railroad Unemployment Insurance. *For further discussion of work-sharing under collective bargaining agree ments, see Layoff, Recall, and Work-Sharing Procedures (in Monthly Labor Review, Part I, December 1966, pp. 1385-1393, and Part IV, March 1957, pp. 329-335). 8This is a simplified generalization, of course. Any'individual’s benefit rights are subject to all of the eligibility and disqualification conditions in the RRUI Act. Short-Run Work-Sharing. T his measure in volves a tem porary reduction in the w orkw eek so as to spread a given quantity o f em ploym ent am ong a larger num ber o f individuals. I t is com m on ly utilized in industries characterized b y sharp fluctuations o f a seasonal character, such as the needle trades and shoe m anufacturing. M a n y collective bargaining agreements p rovide fo r tem p orary w ork-sharing (within specified lim its o r b y jo in t agreement) before regular em ployees are laid off.4 F rom the em ployer's p oin t o f view , w ork sharing keeps a p rod u ctive team together, keeps m en from getting rusty, and tends to reduce turnover. I f carried too far, how ever, it can b e com e a share-the-unem ploym ent plan and m a y run counter to established seniority practices. A unique feature o f railroad u n em ploym ent insurance (R R U I) is that its benefits are deter m ined on a daily basis. M aintenance o f w a y m en w ho are p artly em ployed during the course o f a w eek m a y collect benefits (equal to at least on ehalf o f their regular daily rate) on the other days.6 Thus, the incom e loss w hich work-sharing ordi narily im poses m igh t be partially offset b y a w ork sharing plan integrated w ith railroad u n em ploy m ent insurance. W ith proper safeguards, and designed to carry groups o f regular m aintenance o f w a y m en through som e brief seasonal lull in de m and w hich can n ot b e otherw ise avoided, w ork sharing m ight serve a useful lim ited purpose. 7k R ailroad em ployees are covered b y the on ly single-industry p ublic system o f unem ploym ent com pensation in the U nited States. I t is a Federal system , ad ministered b y the R ailroad R etirem ent B oard and financed b y em ployer contributions. In each calendar year, the uniform rate o f em ployer con tribution depends u pon the balance in the R R U I accou n t (trust fund) as o f the preceding Septem ber 30. F rom 1948, when the present schedule was enacted b y Congress, until 1956, carriers paid the m inim um 0.5-percent rate. T h e 1956 contribu tion rate was 1.5 percent, while the 1957 rate is 2.0 percent. E m p loyer con tribu tions are levied on “ taxable com pensation,” i. e., the first $350 per m on th earned b y each em ployee. A n em ployee's eligibility for benefits is based on his “ taxable com pen sation " during the calendar year (base year) preceding the fiscal year (benefit year) in which be becom es unem ployed and applies fo r benefits. T o be “ qualified," the em ployee m ust have earned at least $400 in taxable com pensation during the base year. T h e am ount o f the daily R R U I benefit is related to total base year taxable earnings, b u t cannot be less than one-half o f the em ployee's regular daily rate o f p a y. T h e m axim um daily benefit, how ever, is $8.50. Benefits m a y continue for approxim ately 6 m onths, except that total benefits paid m a y n ot exceed total base year taxable earnings in railroad em ploym ent. D isqualifying conditions are gen erally less restrictive than under State laws, and postpone rather than cancel benefit rights.® T here is, how ever, a fortuitous relationship o f potential benefits to the dates o f em ploym ent and o f layoff because o f the 6-m onth gap betw een the calendar base year and the fiscal benefit year. F or exam ple, a m an who is n ew ly em ployed on O ctober 1, 1957, and w ho works 9 m onths until he is laid o ff on June 30, 1958, m a y start to collect benefits im m ediately. On the other hand, if a m an is new ly hired on January 1, 1957, and w orks a full year before being laid o ff D ecem ber 31, 1957, he m ust w ait for 6 m onths before he is eligible for a n y benefits. Tw o-fifth s o f the extra gangm en and one-fifth o f the section m en, helpers, and apprentices failed to earn the qualifying $400 in 1954. H a lf o f the section and extra gang trackm en w ho collected benefits in 1954-55 collected m inim um (half-rateo f-p a y ) benefits, indicating considerable base year unem ploym ent. R egular em ployees w ho w ork at least 6 m onths a year, how ever, can generally cou n t on R R U I benefits to cover their weeks or m onths o f unem ploym ent. T h e R R U I system does n ot provide the indi vidual carrier w ith a significant econ om ic incentive to stabilize. W hether or n ot individual carrier experience rating, such as exists under State un em ploym ent com pensation systems, w ould provide such an incentive, the present uniform industry w ide rate prevents any single carrier from having *Limitations of space preclude a fuller description of railroad unemploy ment insurance. For further details, see The Railroad Unemployment Insurance Act as amended to September 1, 1954 (Chicago, Railroad Retire ment Board, 1954), ch. 6, on which this discussionisbased; seealso Domenico Gagliardo, American Social Insurance (New York, Harper, 1955), ch. 13. fSee Part I, p. 70. 75 a significant effect on its ow n level o f contribu tions. T h e higher contribution rates in 1956 and 1957 are, how ever, m aking the railroads as a whole m ore conscious o f the current cost o f un em ploym ent benefits. One result m a y be that when jo b openings are available, carriers will ad minister m ore carefully than in the past the preferential hiring o f R R U I beneficiaries. Im provem en t and extension o f the R R U I ben efits is an alternative to the developm ent o f sup plem ental unem ploym ent benefit plans at the bargaining table. T h e Harris b i l l 7 was a recent effort along these lines. In addition to proposing extended periods o f benefits fo r long-service em ployees, it w ould have increased the schedule o f daily benefits to a new m axim um o f $10.20 per d ay and prescribed a m inim um daily benefit o f at least 60 percent o f the em ployee's regular daily wage* (instead o f 50 percent as at present). So far as the problem o f short-term instability is concerned, the kind o f legislative approach em bodied in the Harris bill w ould ob viou sly provide laid-off em ployees w ith additional protection. On the oth er hand, because o f the uniform con tribution rate paid b y em ployers under R R U I, privately negotiated SU B plans m a y p rove m ore effective in focusing attention on short-term in stability at the system level, where positive program s need to be designed. Supplemental Unemployment Benefit Plans . T h e railroad industry's first supplem ental u nem ploy m ent benefit (SU B ) plan was established on D e cem ber 27, 1956, b y an agreem ent betw een the C hicago & N orth W estern R ailw ay C o. (C N W ) and 12 unions, including the B M W E , representing the nonoperating em ployees o f that carrier. Th is plan, possibly a pattern fo r industryw ide n egoti ations, warrants a brief description here. T h e C N W SU B plan provides tw o kinds o f benefits: (a) E m ployees w ith 2 or m ore years o f service will have their public R R U I benefit supplem ented so as to yield a com bined benefit equal to 60 percent o f gross regular p a y (or about 75 percent o f “ take h o m e " p a y ), su bject to a com bined m axim um o f $10.20 a day. D isqualifying con di tions are stricter than under R R U I , and include discharge for cause (which R R U I does n ot inclu d e). (b) E m ployees with 15 or m ore years o f service are also eligible for so-called “ interim ” benefits, equal to 60 percent o f gross regular p ay. These benefits are p rovided b y the com pa n y after an em ployee has exhausted his R R U I benefits fo r the current benefit year, provid ed the em ployee will again b e eligible for additional R R U I benefits in the succeeding benefit year. D u ration o f these “ interim ” benefits depends u pon the tim e o f year in w hich the la y off takes place, and m a y range from 0 to 6 m onths. T h e plan contains no financing provisions, and its costs are presum ably being m et b y the co m p an y on a p ay-as-you -go basis. Since such costs can be reduced b y stabilizing em ploym ent, th ey can generate a significant additional incentive to stabilize. Other consequences m ight include the tighter adm inistration o f disqualifications and the concentration o f instability on low er service em ployees n ot y e t eligible for supplem ental benefits* T h e C N W plan specifically excludes “ seasonal track forces” laid off betw een O ctober 1 and the follow in g M a y 1, and will, therefore, m ake no direct contribu tion as it stands to the greatest instability problem in the m aintenance o f w a y group. There is, how ever, a provision that redu c tion in track-force em ploym ent below the O ctober 1 95 5-M a rch 1956 (inclusive) average will n o t b e regarded as seasonal. A s p rod u ctivity rises, this clause will increase the stabilization incentive on the com pa n y in relation to this group. A n y SU B plan that m akes instability m ore ex pensive encourages stabilization, p rovid ed the carrier has effective alternative courses o f action. Such alternatives appear to be clearly available in connection with m aintenance of w a y w ork, b e cause o f its deferability. Apart from the actual costs, adm inistration o f a private SU B plan serves to focu s managerial attention on the instability problem in a system atic w ay. T h e m eth od o f financing is also pertinent. A plan in w hich all benefits were paid from a fund, and in which the em ployer’s total obligation was to deposit m on ey at a specified rate into that fund would seem to im pose little direct stabilization incentive. A t the other extreme— represented b y the C N W plan— is a pure pay-as-you -go approach, in w hich every supplem ental benefit is an ou t-o fp ock et cost to the carrier. A n exceedingly strong case exists fo r the de velopm ent o f a system of private supplem entary unem ploym ent benefits. SU B plans on individual carriers will com pel serious attention to layoffs, 76 and create a clear relationship betw een layoff avoidance and SU B costs. T h e railroad com panies w ould thus be establishing a private experi ence rating system w ith ou t the disadvantages w hich n ow characterize m an y State unem ploym ent insurance plans. Since the tim ing o f m aintenance w ork is largely within m anagerial control, SU B plans should n o t p rove to be costly in practice. Summary In light o f the preceding observations, the follow ing measures appear to warrant sym pathetic exam ination b y the carriers and the B rotherhood as possible approaches to the problem o f short term (cyclical and seasonal) instability: (1) effec tive annually determ ined m aintenance budgetin g based on long-term m aintenance needs; (2) fu n c tional rescheduling o f w ork, perhaps guided b y the results o f jo in t stu d y at the system level, so as to m axim ize available w ork during seasonal low s; (3) m inim um individual w ork guarantees; and (4) supplem ental u n em ploym ent benefit plans or (in lieu thereof) extension o f the p u b lic railroad unem ploym ent insurance program . L im ited shortrun work-sharing, integrated w ith R R U I benefits, m a y also be a useful m eth od on som e carriers for cushioning the im pact o f tem porary drops in em ploym ent dem and. * * * * * I f incom e and em ploym ent stability for m ain tenance o f w a y em ployees is given sufficient p riority at the bargaining table b y the carriers as well as b y the B roth erh ood o f M aintenance o f W a y E m ployes, it is our ju dgm en t that effective steps can readily b e taken, w ithin practical econ om ic lim its, tow ard this ob jective. W e b e lieve that it will be in the long-run interest o f all parties to evolve a w orkable program ou t o f their ow n negotiations, and to emphasize the collective bargaining rather than the legislative route. T h e general problem of em ploym en t instability is one that has becom e the focu s o f m uch attention in our society. There is little d ou b t that Congress could, in the case o f the railroads, be persuaded to enact additional legislation to cop e w ith the problem . I f collective bargaining bogs dow n, then congressional action m a y be the on ly rou te along w hich progress can be achieved. •The authors have not yet had an opportunity to study the ONW SUB plan in operation. PartlH. Adjustments to Automation. Summaries of Case Studies and Articles on Office Automation. 77 Adjustments to Automation in Two Firm s d v a n c e p l a n n in g w ith respect to personnel and techniques involved and proper tim ing with respect to business conditions apparently achieved for tw o firms an orderly and generally harm onious transition to autom atic techn ology. H ow the tw o firms accom plished thi§ transition is described b y the D epartm ent o f L a bor's Bureau o f L a bor Statistics in separate case studies of, first, a large m anufacturer o f radio and television sets w hich adopted printed circuitry and autom atic inserting m achines in producing its 1955 T V receivers; and second, the hom e office o f a large insurance com pan y w hich installed a digital electronic com puter to reduce punchcard opera tions in the preparation o f business operating statistics.1 T h e cases are illustrative, rather than representative, o f the industries concerned; also, th ey are n ot intended to indicate the im pact o f autom atic produ ction m ethods on em ploym ent generally. Laborw ise, the experience w ith the autom atic techniques at b o th com panies had significant im plications. On the one side, new job s were created for w hich, w ith som e exceptions, brief on -th e-job training sufficed. N ew branches o f w ork were developed to plan for, install, and service new autom atic equipm ent. Som e new skills were required. In neither firm did the machines replace workers perform ing w ork re quiring a high degree o f judgm ent. N or did their introduction eliminate all hand labor. T h e elec tronics m anufacturer foun d hand labor im perative in tasks requiring fine hand m ovem ents and in volvin g the use o f fragile materials. A t that firm, increased responsibility and som e differences in w ork conditions (not described) that follow ed the introduction o f autom ation, led to higher p a y on autom ated jo b s ; expanded ou tput, through A January 1956 increased prod u ctivity, was expected to offset any reduction in plant em ploym ent. A fter the installation o f the digital com pu ter at the in surance firm 's hom e office, em ployees perform ing the new functions averaged higher annual salaries than those w ho w orked w ith the old setup. Som e w ork using unskilled labor was reduced, how ever. O f all the workers, w om en, w h o form ed a high proportion o f the w o r k force at b oth com panies and w h o were com m on ly engaged in tasks to w hich the autom atic techniques were adaptable, appeared to b e m ost adversely affected. Certain circum stances were com m on to b oth firms. B o th had a volum e o f routine, repetitive w ork, w hich was perform ed chiefly b y wom en. T h e new devices were installed over a period o f years, under long-term program s designed to im prove com petitive perform ance (produ ct and efficiency), keep pace w ith an expanding volum e o f business, and eliminate high labor turnover am ong the firm s' w om en workers. B o th firms planned further autom ation, su bject to analysis and experim entation. T h e com panies used differ ent m ethods to advise their em ployees about the changeover prior to actual m echanical rearrange ments. T h e advance com m unication b y the in surance com pan y, however, was relatively m ore extensive than that b y the electronics m anufac turer. T h e insurance com pan y inform ed all em ployees in extensive detail concerning its plans to install the com puter. T h e electronics com pa n y inform ed on ly its p rodu ction forem en and union officers o f the proposed installation o f the new autom atic equipm ent; other nonsupervisory w ork ers learned o f the plans via the “ grap evin e." A p o licy o f no layoffs or dow ngrading because o f technical changes was already established in the insurance com pany. A t the insurance com pan y, affected em ployees were n ot represented b y a union. A t the elec tronics plant, the union officials appeared to be 1 A Case Study of a Company Manufacturing Electronic Equipment, and The Introduction of an Electronic Computer in a Large Insurance Company, both issued in October 1955. The case studies were based largely on inter views with company officials, information in company publications, and, at the electronics company where a collective bargaining agreement was in force, with union officials also. The studies describe the nature of the changes, some effects on employment, productivity, and working conditions, and some of the problems and adjustments reported by management and labor. Case study No. 2 provided relatively more detailed data on the effects on plant personnel of the changeover to automatic technology. 79 concerned m ain ly w ith obtaining fo r their m em bers a share in p rodu ction gains through increased wages and related benefits. Case No. 1 T h e “ Y ” C om p an y is one o f the largest m anu facturers o f radio, T V , and phonograph sets. Its plant w ork has consisted largely o f engineering and assembling various m odels o f these products and som e m ilitary electronics w ork. T h e co m p a n y purchases standard com pon en ts from sup pliers, and installs the com pleted chassis into com panym ade cabinets. T h e conventional m eth ods o f assem bly had previously involved handling several hundred parts and soldered connections. A ssem bly-line m ethods, w ith considerable jo b specialization, had been the dom inant features o f the com p a n y's television m anufacturing opera tions. C om p on en t parts, after inspection, w ent to bins alongside assem bly lines. T h e riveting departm ent had previously attached m etal parts, such as tube sockets, to the chassis, and other plant divisions had done the intricate wiring on subassemblies. On each side o f a 300-foot table, the workers, nearly all w om en, using handtools, perform ed one or m ore repetitive operations— wiring, soldering, or lacing on each set, or inserting com ponents in predeterm ined sequence. T h e com pletely wired chassis then was m oved b y con veyors to the line where television tubes were in serted. These chassis were tested electrically and those accepted were con veyed to the next departm ent, where th ey were b olted into cabinets, and the entire set tested and packed for shipping. On sets m ade several years ago, nearly 60 percent o f the direct labor tim e was expended on wiring, lacing, and assembling. T h e “ Y ” C om p an y first substituted printed (ph otoetch ed) circu itry for m a n y handwiring o p erations on 5-tube p ortable radios in 1952. C om ponents were inserted b y hand on the board and the underside was hand-dipped in m olten solder to com plete the subassem bly. T h e com pa n y decided in 1954 to use photoetch ed circuit boards in its 1955 television receivers; in the 1956 m odels, abou t 75 to 80 percent o f the wire circuits were photoetch ed on the board. D evelop m en t o f a m echanism to attach com ponents autom atically began in 1953 and within a year a m achine was inserting com 80 ponents on abou t 6 boards a m inute. A m echa nism n ow in use handles 12 boards a m inute and since 1953 other im provem ents perm it the handling o f com ponents o f various sizes. These advances m ade possible significant increases in efficiency and im provem ents in quality. A fte r the circuit boards are processed and com ponents attached, under the new m ethods, th ey are shipped to a central plant fo r handwiring o f the rem aining 20 to 25 percent o f the circu itry and inserting o f the rem aining com ponents, attach m ent o f the printed boards to the chassis, and installation o f picture tubes, all on an assem bly line. T h e use o f printed circuitry has simplified the testing operation. In trodu ction o f the new m ethods reduced b u t did n ot do aw ay w ith hand assem bly operations. R ivetin g, tube inserting, installing, testing, ad justing, and packing were o n ly indirectly affected and continue to be largely m anual activities. R eorganization o f assem bly lines reduced overall requirem ents for handwirers, lacers, and assem blers, jo b s held chiefly b y w om en. T h e new techn ology created som e new m achine tending job s, for w hich no greater skill or training seemed required; o n ly 2 w eeks' training was given. Certain new m achine operations, utilizing som e w hat higher paid labor and som e additional skilled occupations, were created. F o r example, em p loy m ent o f skilled jig and fixture m en in d evelop m ental, repair, and m aintenance w ork doubled as did the industrial engineering staff; the num ber o f m echanical and electrical engineers m ore than doubled and the ratio o f engineers to produ ction workers increased. Som e unskilled jo b opportunities were elim inated, b u t no worker, according to com pan y officials, was laid o ff as a result o f the changes. Som e workers were reassigned to final assem bly, inspecting, packing, and related operations, as well as to the new ly created autom ated job s. A s printed circuits usually result in lighter T V sets, w om en could be assigned to som e packing job s. P a y for the autom ated jo b s was set at 5 to 15 percent a bove the straight-tim e rates fo r unskilled assemblers because o f som e differences in w orking conditions and increased responsibility. A n in dividual incentive p a y basis was inaugurated for em ployees w ho process the printed circuit boards up to the stage where they are fed into the a u to- Installation o f a large electronic com puter in the classification sections o f division “ X ” began in early 1954. There were 198 em ployees in these sections, 800 in the division. A s a result o f the m ach ined operation, it was expected that a large num ber o f the sections’ em ployees w ould be available for reassignment. These sections m ain tain running inventories o f all policies in force and in an average m onth process abou t 850,000 p olicy transactions. T h e em ployees in these sections use data from other operating sections— reported on punchcards— and their w ork involves sorting, classifying, and calculating. T h e y per form ed this w ork using 125 separate punchcard machines (not including incidental k e y punch m achines), at a $235,000 annual rental. These em ployees, w ho had an average annual salary o f $3,700 (table) handled abou t 3% m illion punchcards m onthly. T h e w ork required fre quent shifting o f card decks and m aintenance o f paper controls. Installing the com pu ter resulted in an estim ated 50-percent net reduction in the budget for the classification sections, 9 percent in division “ X . ” W ork in these sections could n ow b e handled b y 21 punchcard m achines and 85 em ployees averaging m a tic inserting m achines and also fo r som e o f the w orkers on the final assem bly line. T h e others received incentive p ay on a group basis. W orkers w h o operated the autom atic inserting equipm ent were n ot under the incentive p a y program . A b ou t 2 weeks before the new m ethods were applied, the vice president in charge o f production inform ed the prod u ction forem en concerning the changes. T h e union officers were also told in advan ce that the com pa n y was trying to im prove produ ction procedures. Other workers learned o f the changes via the “ grapevine.” T h e experience o f the com pa n y suggests the possibility o f an orderly transition to autom atic technology, w ithin the fram ew ork o f am icable union-m anagem ent relations. T h e current collec tive bargaining agreement, w hich becam e effective 3 m onths after the new procedures were installed in m id-1954, does n ot include provisions concern ing the introduction o f new autom atic equipm ent. U nder present and predecessor lab or agreements, jo b changes resulting from technological d evelop m ents are governed b y w ork rules covering tech nological changes in general. N ew jo b vacancies were posted and workers were selected b y forem en accordin g to seniority and ability to perform the duties required. Som e preference was expressed fo r m ale workers. T h e changeover was successful largely because the new techniques were introduced at a tim e o f m odel changeover and em ploym ent expansion. T h e com pan y plans to install 2 autom atic units in addition to the 4 n ow in use. W age structu re i n cla s s ific a tio n sections i n A B C c o m p a n y , before a n d a fte r com puter in s ta lla tio n Approximate annual salary Employees Employees released or Employees ass&ied to expected in to be re classifi the com leased for puter opera new cation sec other as tions 1 tions signments Men Women Men Women Men Women Men Women Case No. 2 $2,500.................. $2,800........ ......... $3,000.................. $3,200.................. $3,400.................. $3,600 > ............... $3,700.................. $4,000.......— ....... $4,300.................. $4,600.................. $6,000.................. $5,400.................. $5,800.................. $6,700 ..... .......... $7,200 ...........__ $7,600 _____ $8,100 ......... — $8,500.................. $9,000and over___ T h e “ A B C ” L ife Insurance C om p an y is a large com pan y selling diversified form s o f insur ance. Its operations require the rapid and accurate processing o f constantly increasing rou tine paperwork. F or the past 15 years, the com pan y has been plagued with a labor shortage. A high proportion o f the workers in its hom e office were recent high school girl graduates, whose brief stay with the com pan y resulted in com plete turnover every 5 years. M a n y o f the operating divisions hired high school students on a part-tim e basis. In the early postw ar years, conventional office m achinery was used extensively. Employees originally in classifica tion sec tions Total.......... 4 4 3 9 3 1 1 3 1 1 1 1 1 1 1 1 189 7 3 2 3 1 1 1 18 5 9 5 2 2 3 2 2 2 1 12 8 5 2 1 2 126 1 1 2 1 1 1 1 1 11 7 2 1 1 4 3 3 1 9 30 28 34 9 16 8 12 5 5 1 6 36 36 52 2 8 14 71 i Includes, in addition to the 20 employees working in computer opera tions, 66classification sections employees who wereretainedonnonoomputer duties, and9employeesin theproceduredevelopmenfrgroup. >Nonclerical labor. 81 $4,200 annually. A nnual punchcard m achine rentals declined to a total o f $19,000. T h e changeover freed 15,000 square feet o f floor space. Principal supply savings were the 2% m illion m on th ly punchcards required; the inform ation on the 850,000 policies could be put on 71 reels o f m agnetic tape and the 1,000 reels purchased at the ou tset could be erased and reused. T h e need for paper controls o f interm ediate totals practically disappeared. Savings are partially offset b y am ortization charges against the com pu ter; regu lar m aintenance fees to the m anufacturer; and costs incident to the “ dow ntim e” (abou t 4 per cent) o f the com puter from m echanical failure. T h e com pan y found that actual investm ent w ould be returned in abou t 4 years. Job reductions as a result o f the com puter in stallation w ould take place v ery largely am ong clerks perform ing the large volum e o f simple re p etitive operations in w ork areas to which auto m ation is suited. T h e other em ployees were generally engaged in w ork requiring experience and exercise o f judgm ent. C om p an y officials pointed ou t that reduction in clerical job s w ould enable it to set up m an y positions calling for those qualifications. Outside division “ X , ” likewise, the electronic com puter was n ot expected to affect the “ substantial num ber” o f positions requiring judgm en t and experience. T h e com pan y planned m ost carefully b oth personnel adjustm ents and the m echanical aspects o f the changeover. E m ployees affected were ad vised in advance o f the im pending installation and n o attem pt was m ade to gloss over the im plications for em ploym ent in the classification sections. Individual em ployees were interviewed w ith m eticulous concern for jo b preferences in other operations o f the com pany. E xcep t for cases o f norm al turnover, the em ployees were, or will be, successfully placed in other com pan y jo b s ; the hom e office had 15 other punchcard sections utilizing personnel o f approxim ately equal skill. J ob reassignments had n ot been com pleted at the tim e o f the study. T h e com pan y has m aintained a consistent p olicy o f n ot discharging or dow n grading workers because o f technological change. A n officer o f division “ X ” m et regularly with personnel officers in advance, to discuss the m an y personnel m atters, particularly em ployee trans fers. In A pril 1954, ju st before space rearrange m ent com m enced, the division chief held an in form al m eeting o f the sections1 m embers, at w hich he told them the com puter was to be installed, gave reasons for the decision, and reiterated the com pa n y p o licy o f no jo b loss or dow ngrading because o f the new w ork techniques. T h e pros p ect o f new assignments aroused a natural am ount o f concern am ong em ployees; at the same tim e, the general reaction was one o f interest and understanding. D u rin g the form al trial period, J u n e-O ctob er 1954, when the com puter was tested in the critical w orkload area o f data sorting, articles appeared in com pan y publications, directed at hom e office and field staffs. T h e articles described the possi bilities and lim itations o f the com pu ter; announced directly that som e em ployees in the classification sections w ould be transferred; and reiterated that even this newest technique w ould n o t mean any personnel separations. T o provide a nucleus o f com puter operators, 8 keym en received from 1 to 6 m onths’ training from the com puter m anufacturer. Otherwise, the com puter staff was trained on the jo b , a step based upon experience obtained from training the k eymen. E v e ry effort was m ade to use persons already in the classification sections. Som e o f the new positions in volved skills and know ledge n o t available in the group, however. Criteria for se lection o f the com puter staff w ere: experience, proficiency in m athem atics, and college training (considered desirable, b u t n ot essential). Thus, o f the 20 com puter em ployees, 9 were from the classification sections, 5 from other sections o f division “ X , ” 5 from other divisions, and an electronics engineer, hired from outside the com pany. T h e com puter w ork force consisted o f the fo l low ing em ployees: 1 supervisor (engineer, man) 2 computer operators and 2 assistant computer operators (men) set up for 2 shifts 1 tape librarian (woman) 1 auxiliary equipment section head (man) 1 converter team head (woman) 1 converter clerk (woman) 1 assistant converter clerk (man) 3 junior converter clerks (men) 1 key punch operator (woman) 1 card and tape file clerk (man) 1 machine room distributor (man) 1 control captain (woman) 1 assistant control captain (woman) 2 control clerks (women) 82 T h e em ployees n ot selected for com puter opera tion were released to other assignments gradually, after a personal interview and careful review o f their record. A t the interview, each em ployee was requested to specify a jo b preference in trans fer. In n o case was anyone offered a low er payin g jo b . T h ose released were transferred to jo b s w hich th ey could handle w ith on ly brief on -th e-job training. T heir new supervisors were uniform ly consulted before the transfers were m ade; they interviewed the transferees, and are currently satisfied w ith the new arrangements. W ith in the classification sections, six super visors had developed considerable skill in handling people. T h e 4 m ost interested in the com puter installation are n ow perm anently assigned to its w ork force (3 to operation and 1 to developm ental w o rk ); 1 preferred to transfer to an equivalent staff jo b in another division ; and the rem aining supervisor accepted a higher payin g nonsupervisory jo b . T h e procedure developm ent group, which studied problem s w ithin the com pu ter's range and translated their findings into operations, began w ith 14 persons; b y June 1956, all b u t 4 will have transferred to a new ly created electronics installa tions division. T h e electronics installations division was form ed on January 1,19 55 , to expand the use o f electronic com puters in the firm and to provid e a p ool o f skilled m anpower. Its chief had piloted the initial studies which led to the recom m endation that a com puter be installed. T h e 8 m en selected initially for this division had had som e prior ex perience in the field; 21 were added, o f w hom 13 were selected because o f prior experience with specific phases o f the com pa n y's business; the other 8 were clerical assistants. In June 1955, hom e office personnel records were culled to develop a list o f individuals w ho had the experience and educational background required in this highly specialized division. T h ose listed were invited to take three examina tions which w ould indicate their aptitudes for the w ork. M o re than 250 responded, representing practically every division in the firm. B y Sep tem ber 1955, 30 persons had been selected, from as m an y different divisions as possible. T h e cri teria fo r this selection, in order o f im portance, w ere: com p a n y experience, seniority, and aptitude ranking. T h e 60 n ow com prising the electronics installations division are heavily w eighted w ith those having skilli or aptitudes in program m ing, p roject analysis, and other related processes. Som e will b e trained to operate a large com puter. B y the end o f 1954, the suitability o f the elec tronic com pu ter to office w ork had been substan tially established and the com pu ter officially accepted. Certain factors contributed m aterially to the success and ease o f the adjustm ent to the ch an geover: the com pa n y's grow th to m eet an expanding volu m e o f business; relatively high labor turnover w ith an accom panying shortage o f w om en clerks in its hom e office; and the basic sim ilarity o f jo b s am ong m a n y com pa n y divi sions, perm itting easy transfer o f em ployees. T h e com pa n y is carefully studying 22 activities under a 3- to 5-year program fo r possible future installations. I t estim ated that it w ou ld take 1 to 1% years to develop plans fo r a specific com puter a ctiv ity and from 1 to 5 additional years to attain problem -free installation. 83 M a jo r T echnological Changes A d ju s t m e n t to A u to m a tio n in a L a r g e B a k e r y W o r k i n g within the fram ew ork o f a long estab lished collective bargaining relationship, the m an agem ent o f a large bakery introduced in 1953 m ore h ighly autom atic production techniques w ith a minim um o f hardship to its em ployees. C on tract provisions greatly reduced the num ber o f workers w h o m ight have been displaced, established rates o f p ay fo r new jobs, and guaranteed workers, w ho m ight be shifted to job s o f lesser skills, the reten tion o f wage rates at their higher skill levels. H ow this transition to increased autom atization was effected is described in a case study b y the U . S. D epartm ent o f L a bor's B ureau o f L a b o r Statistics.1 Im plications fo r labor suggested b y the stu d y are based on facts developed at the plant and reflect on ly the experience o f the bakery studied. There is n o intention to assess the im p act o f autom atic produ ction m ethods on em p loy m ent in the industry as a whole. This description, how ever, should be useful in suggesting the gen eral character o f developm ents that m a y occu r at the plant level as the new m ethods are adopted elsewhere. T h e bakery studied (Z C om p an y B akery) em p loys approxim ately 575 workers. T h e bakery's entire ou tp u t o f a variety o f bread and cake produ cts is sold to a chain o f retail grocery stores. In 1948, the demands o f the retail outlets had so increased that the bakery officials felt an urgent need fo r increasing their produ ction facilities. A fter 2 years o f study, the m anagem ent decided to relocate the com pan y's separate facilities in a single, m odernized unit. C onstruction o f the building was begun in 1950; b y 1953, the bakery was operating at its new location. 1A Case Study of a Large Mechanized Bakery, BLS Report 109, September 1966. This study, based on interviews with company and union Is the third In a series of case studies on automatic technology. S e p te m b e r 1956 T h e changes in techn ology introduced at the Z C om p an y B ak ery were prim arily directed tow ard bringing abou t a greater degree o f m echanization o f the bak ery's m aterial-handling m ethods. T h e bulk m aterial-handling practices and the bread m aking process have been so integrated m echani cally in the new bakery that, except fo r one stage in the breadm ixing operation, there is n o manual handling o f the p rod u ct from the receipt o f the d ry bulk ingredients to the d eliv e iy o f the finished loaf o f bread at the shipping platform . L ocation o f the new plant on a railroad siding m ade it possible to replace the form er m anual bulk m aterial-handling m ethods w ith a pneum atic con v ey or system especially designed fo r the bak ery. Seven workers are now em ployed in the entire m aterial-handling departm ent, com pared w ith 24 workers before the change. F lou r and sugar, w hich form erly cam e in bags, are n ow delivered in bu lk b y special railw ay cars and trucks. T h e cars are unloaded through tubes and hoses b y a w orker w h o operates the new sys tem from his position at the con trol panel. B y m anipulation o f the buttons and switches on the panel, the operator channels d ry bulk ingredients to storage bins on the to p floor. M an u al m o v e m ent is entirely eliminated. F lou r m oves from railw ay cars into bins at the rate o f 20 tons an h ou r w ith one m an operating the system . Previously, it to o k 24 m en, 5 to 6 hours, to m ove 50 tons into the plant. O utput per m an-hour fo r this task under the autom atic sys tem is n ow at least 40 times greater than it was b efore the change. N ew m echanical m ethods adopted fo r handling oils and lard in bulk have also substantially re duced lab or requirements. T h e oils and fats are pum ped into the plant through steam -heated pipe lines w hich keep them liquid and are stored in special insulated tanks and m etered directly into the m ixing machines. 8U Displacem ent o f W orkers. In th e bread departm ent, w hich is the m ost im portant in terms o f em ploym ent and volum e o f produ ct, 1 o f 2 previously existing sem iautom atic breadm aking lines has been replaced b y an auto m atic line. T h e processes required in the m ixing o f the ingredients, the m akeup o f the dough (including shaping and bakin g), and the w rapping and slicing o f the bread, rem ain unchanged. H ow ever, m anual handling o f the m aterials has been virtually eliminated, and the speed and ca p acity o f m achines have been increased. F or m erly, ingredients were weighed b y hand, and certain steps in each operation required m anual loading and unloading. N ow , ingredients are autom atically weighed b y scales located below the storage bins and fed into the m ixing m achines; the m ovem ent o f the dough in the m ixing oper ation is entirely m echanical except at one point— the rem oval b y hand o f the sponge dough from the mixers when the operator judges it to b e o f the right consistency. In trodu ction o f the auto m atic line has resulted in substantial increases in ou tp u t per m an-hour in breadm aking operations (based on ca p acity operations), as show n in the follow ing tabulation: Percent Mixing_____________________________________________ Makeup__ _________________________________________ Wrapping (including slicing)_______________________ 240 250 512 Personnel Changes T h rou gh collective bargaining, m anagem ent and union officials resolved problem s o f displace m ent, downgrading, and changes in skill levels and earnings w hich resulted from the technological advances established in the new bakery. On reaching the decision to m odernize, com pan y officials inform ed the business agent o f the bakery w orkers' union o f its plan to m ove. F rom then until the new plant was in full operation, 5 years later, m anagem ent officials and union represent atives conferred frequently on the changes and their possible effects on the workers. Full infor m ation was supplied to the union's business agent so that he cou ld review contem plated jo b or equipm ent changes, new jo b s proposed, and wage changes, and could m ake suggestions for cushion ing the im pact o f the changes on workers. 85 E arly in the planning stages, the com pa n y estim ated th at the new plant w ould require 25 percent few er prod u ction w ork ers. T h e business agent was to ld o f this estim ate. H e inform ed th e workers that som e displacem ent was anticipated b u t did n ot divulge the exact extent, believing the estim ate w ould b e revised dow nw ard in the course o f negotiations before the actual change. In 1952, as the building neared com pletion , a new union con tract p rovided fo r changes in the daily schedule o f hours that had the effect o f substantially reducing the estim ated reduction in em ploym ent. T h e provision, one which was bein g adopted b y the industry generally, provid ed fo r a guaranteed m inim um 8-hour d a y as contrasted w ith the previou sly existing 6-hour guaranteed m inim um day. U nder the 6-hour day, the b ak ery scheduled its workers so th at th ey w orked a 40hour w eek over a 6-d ay period. W ith the adop tion o f the 8-hour day, the workers were paid fo r 40 hours within a 5 -day workw eek. I t was necessary, therefore, to establish a rotatin g w ork w eek requiring an extra relief w orker fo r every 5 p rodu ction workers. A s a result, the estim ated 25-percent drop in em ploym ent was reduced to abou t 5 percent. Reassignment o f W orkers. T h e change to m ore autom atic m ethods m eant som e shifting o f workers from jo b s in reduced activities to jo b s in expand ing activities. In som e cases, the shift m eant a dow ngrading in skill level; in others, upgrading to o k place. W orkers m ost affected were m aterial handlers, bread-m ixer helpers, and the bread w rapping personnel. W h en the m anagem ent inform ed the union business agent o f its estim ated em ployee displace m ent, it also gave assurance that any em ployees shifted to low er paying jo b s w ould be paid at the rate th ey had been receiving fo r their higher skilled job s. T his news rem oved som e o f the anxiety arising from the announcem ent o f possible jo b loss. T h e 1952 union con tract form alized the com pa n y's pledge. Som e workers w ith higher skills were shifted to jo b s as sanitors in the expanding sanitation departm ent. W hile this represented a dow ngrad ing to a low er rated jo b , there was apparently little cal m aterial-handling techniques, which substan tially reduced the physically exhausting part o f the task, apparently com pensated fo r the need to adapt to equipm ent w ith faster speeds and in creased capacity. N ow , the operator o f the autom atic bread p roof, oven, and cooler system n ot on ly has responsi b ility fo r the oven b u t he also controls the auto m atic equipm ent w hich rem oves baked loaves from pans and cools them after th ey leave the oven. These steps in the process in volved manual load ing and unloading chores on the sem iautom atic line and were part o f the w rapping departm ent’s operation. Operators o f the slicing and wrapping m achines on the autom atic line have also had an increase in responsibility because o f the increased num ber o f slicer-wrapper m achine units under their control. T h e operational pace has been stepped up con siderably, and the operators are required to observe schedules so that their operation is com pletely synchronized with the rest o f the autom atic line. In recognition o f the greater skill required b y the bulk m aterial-handling equipm ent m en and the increased responsibilities o f the operators o f the autom atic bread p roof, oven , and cooler system , and o f the slicing and w rapping m achine operators, the 1952 union con tract established a new top skill level classification o f “ specialists” for these three job s. T h e com pan y and union officials agreed that the duties o f the new jo b s in the m ixing operation and o f the divider operator and the m older operator were n ot sufficiently different from their counterparts on the sem iautom atic line to ju stify a change in skill level classification. discontent over the shift, since these workers retained the higher p a y rates o f their form er job s. W orkers unable to adapt themselves to the m ore efficient and faster machines were given the op portu n ity o f w orking in job s to which they could adjust. T heir rates o f p a y were continued at the levels pf the jo b s from which th ey were m oved. Em ploym ent Trends D uring 1953, total em ploym ent in the Z C om p an y B ak ery declined 4.4 percent; the num ber o f produ ction workers fell 8.4 percent. In 1953, the first full year of operation in the new plant, m anagem ent had to la y off som e workers while it becam e fam iliar w ith the new produ ction m ethods and equipm ent. W hen the produ ction problem s were resolved, ou tput expanded w ith increased sales, and em ploym ent increased. B y 1955, the total num ber o f produ ction workers slightly ex ceeded the num ber em ployed before the change. Occupational Changes A d op tion o f m ore highly autom atic produ ction techniques resulted in the creation o f som e new jo b classifications and skill levels. T h e new jo b o f bulk material-handling equipm ent m an was estab lished in connection w ith the operation o f the pneum atic m aterial-handling system . A t first, a licensed engineer was brought in to operate the system since it was thought that there were no workers in the plant qualified to operate it. W h en som e dissatisfaction w ith the engineer’s perform ance arose, a w orker in the m aintenance depart m ent was given several weeks o f on -th e-job training at the control b oard after w hich he p roved quite capable. T h e second operator— also trained on the jo b — was form erly a dough m ixer in the plant. F or b oth men, the shift m eant an up grading. M ach in e operators on the sem iautom atic bread line apparently had sufficient flexibility to m eet the dem ands o f m achine operation on the auto m atic line. W ith few exceptions, where a w orker was required to operate equipm ent som ewhat m ore m echanized than previously, on -th e-job training for 1 or 2 weeks was sufficient. T h e training was necessary to adjust to the pace o f the new line rather than to acquire new skills. N ew m echani W age Changes T h e 1952 union con tract p rovided for an acrossthe-board wage increase o f 17K cents per hour for the b ak ery’s p rodu ction workers, all o f w hom are on an hourly rated p a y basis. This was in line with raises granted b y other firms in the industry at the time. A rate o f 18 cents per hour a bove that paid the previously existing top rated jo b s (including m achine operators) was established for the new “ specialists” classification. Since the change to new m ethods, in addition to wage increases granted annually, fringe benefits have been expanded. 86 Im plications for Supervisory P ersonn el W ith the change, a new plan t superintendent and assistant were brou gh t into the plant. These college trained m en were fam iliar w ith the p rod u c tion m ethods o f the industry and cou ld a pp ly other industrial produ ction techniques as well as their general theoretical know ledge for use in the industry. O f the 20 nonw orking forem en em ployed before the change, 10 were successfully retrained on the jo b to m eet the requirem ents o f the new plant. T h e rem aining 10 were replaced b y m en especially trained for their job s as forem en. Som e were p rom oted from the ranks and som e were hired from the outside. R eplaced forem en were laid o ff if th ey were relatively new m en in the plant. T h ose w ith years o f service were given other job s at the rate o f p a y th ey received as forem en. Attitudes Tow ard Increased M echanization F rom the standpoint o f the com pan y, the effort to m odernize, on the whole, has been successful. C ap acity has been enlarged. Increased ou tp u t n ow m eets the dem ands o f the chain o f r e ta il, stores. U nit labor costs have been reduced, although wages have risen steadily. Losses due to wastage and spoilage have been reduced. N ew and faster m aterial-handling m ethods have m ade it possible to deliver a fresher p rod u ct to the consum er. T h e consensus o f the workers, as expressed b y the local union president, was that the results o f the changes on the w hole were advantageous to them. T h e union, as well as the com pan y, takes pride in the orderly transition that well-established collective bargaining m ade possible. In the union view, an im portant aspect was the com p a n y's early announcem ent o f its plans and its willingness, prior to the change, to consult on issues affecting em ploym ent. T h e change in w ork schedules which m inim ized displacem ent and the decision to maintain wage rates o f dow ngraded em ployees were particularly satisfactory aspects o f the change. T h e local union president believed the workers have shared in the greater p rod u ctivity o f the plant through the wage increases and fringe benefits obtained in the past few years. — H erm an J. R othberg Division of Productivity and Technological Developments 87 L a b o r A d ju s t m e n t s f o r C h a n g e s in T e c h n o lo g y a t a n O i l R e f in e r y N o r e g u l a r e m p l o y e e s were laid off when the m anagem ent o f a m edium -size oil refinery re placed form er processes w ith m ore autom atic processes betw een 1948 and 1956. A small num ber o f workers were upgraded, nearly half retained their grade, and a sizable group were dow ngraded. Through collective bargaining, m anagem ent and labor agreed on seniority and m aintenance-of-w age-rate provisions to govern the reassignment o f workers and to m inim ize the im pact o f the adjustm ents. T o learn h ow these adjustm ents were effected was the m ain ob jectiv e o f a case stu dy b y the U . S. D epartm en t o f L a b o r s B ureau o f L a bor Statistics.1 T h e stu dy also yielded inform ation on w orking conditions and lab or relations at a plant w ith a higher degree o f autom atic operation than is present in m ost industries. T h e stu dy was intended to be illustrative o f the effect o f technological change on the w ork force in the petroleum refining industry. Im plications for lab or suggested b y the stu dy reflect o n ly the experience o f the refinery studied, al though it also presented som e industry b ack ground. T h e oil refinery studied em ployed approxim ately 660 em ployees in 1956. I t is a part o f an inte grated m ultiplant com pan y with producing, processing, and m arketing facilities located at various points in the U nited States. Since its construction in 1930, the refinery has undergone a num ber o f changes in plant and equipm ent leading to greater diversification o f ou tp u t and m ore autom atic control o f processing. H ow ever, this sum m ary discusses those changes since 1948, as these held the m ost im portan t im plications fo r the workers. additional gas, oil, gasoline, and gas and coke from heavier residual oil after crude distillation). These units replaced a num ber o f batch -ty p e therm al pressure stills in use since the refinery started. T h e new units were introduced prim arily to upgrade the quality o f the gasoline produced rather than to increase substantially the crude oil charging capacity. One result o f the installation o f these tw o units was m ore autom atic and continuous operation o f the plant. Changes in temperature, pressure, flow, and level are controlled autom atically on the new units which operate on a continuous 24-hour basis, shutting dow n on ly abou t twice a year for cleaning and necessary repairs. T h e old pressure stills were shut dow n 22 hours ou t o f every 72hour operating cycle for cleaning ou t accum ulated coke. Planning began in 1951 for a $14-m illion p ro gram for increasing crude oil charging ca p acity and further raising the yield o f quality gasoline per barrel o f crude oil. T his program p rovided for building an additional crude distillation unit and a new catalytic reform ing unit (which replaced a thermal reform ing unit) and further instrum enta tion o f existing equipm ent. T h e new crude dis tillation unit was ready for operation b y A pril 1954, and the catalytic reform er started operating in January 1955. B o th o f these new units are highly instrum ented and highly autom atic. A s a result o f these changes in technology, the quality o f gasoline produ ced was upgraded from an octan e rating o f 87 in 1948 to 97 in 1956. W ith virtually the same num ber o f plant produ ction and related workers, crude oil charged per day rose 57 percent— from 35,000 barrels in 1948 to 55,000 barrels in 1956. D irect labor requirem ents on the new units were abou t one-third less than on the old pressure stills. H ow ever, labor require m ents on auxiliary operating and m echanical functions had expanded during the same period. Planning the W ork ers’ A djustm ents M a jo r Tech n ological Changes T h e m a jor changes resulting from the $20m illion m odernization program com pleted in 1949 were the installation o f a fluid catalytic cracking unit (a unit in w hich a catalyst is em p loyed to bring abou t a desired chem ical reaction) and a delayed coking unit (a unit for producing S e p te m b e r 1957 Tech n ological changes in 1949 resulted in the reassignment o f 164 workers— abou t one-fourth o f all personnel. Changes in 1954 were less extensive. 1 A Case Study of a Modernized Petroleum Refinery, BLS Report 120. This study, based on interviews with company and union ofllda]& is th« fourth in a series of case studies on automatic technology. 88 N o regular em ployee was laid off as a result o f the changes in either year. Fifteen m on th s’ advance planning preceded each o f these personnel changes. M anagem ent and union representatives join tly discussed the num ber o f workers required on the new units and their qualifications. T h e y also w orked ou t union con tract provisions governing layoff, transfer, and prom otion in the reassignment o f personnel. N egotiations leading to the 1949 union contract helped to crystallize tw o basic principles concern ing displacem ent and reassignment o f the plant workers. First, length o f service was established as the basis for retention o f workers in the event o f projected layoffs and also as a factor in regulat ing dem otions. T h e ob jective was to m inimize displacem ent o f older men w ith years o f service at the refinery. Second, the placem ent o f m en in new ly created or reorganized departm ents and a ny proposed change in the application o f the dem otion or p rom otion procedures were m ade the su bject o f m anagem ent and union conferences. Changes in assignment necessarily were m ade in reference to the lines o f progression from one jo b to another that the techn ology o f the plant required. A lthough the progression system had existed at the refinery from its very beginning, the negotiations led to setting up o f a m ore form al system . A basic feature o f the progression system is that virtually all workers are hired at the plant as probationary laborers and advance to higher paid job s when available on the basis o f their length o f service. A t each jo b level, the worker is trained on the jo b to m eet the dem ands o f the next highest classification. A fter a trial period, a probation ary laborer has a choice betw een 2 routes o f advancem ent, 1 covering operating job s and the other, m aintenance jobs. H e is then assigned as a regular laborer to the labor p ool o f the route he has chosen and his plant seniority is effective from the date o f his em ploym ent. W hen a jo b opening or a chance fo r “ breaking in ” at a specific departm ent arises in the chosen route, eligible workers m a y app ly for the assignment and selection is m ade on the basis o f plant seniority. Once a worker is assigned to such a jo b , he a c cumulates seniority in the departm ent. T here after, he advances in the departm ent on the basis o f departm ental seniority, irrespective o f plant seniority. 89 T o assure operating workers that their seniority rights w ould b e fully protected during the plan ning and construction period preceding the startup o f the new units in 1949, m anagem ent and union officials agreed that jo b vacancies in the various departm ents w ould be filled on a tem porary basis fo r that period. W orkers hired during the period to fill any jo b s were told that they m ight have to step b ack to lesser paying jo b s when the new units were started and senior em ployees exercised their rights. R eassignm ent and Retraining P rodu ction workers whose jo b s were directly affected b y the introduction o f the ca ta lytic cracking unit and other changes were reassigned to other jo b s on the basis o f their position on special seniority registers established during the bargaining negotiations. O f the 164 workers affected in 1949, approxim ately 102, or 62 percent, were placed in jo b s paying at least the same wage rate they had previou sly; the remaining 62 w ork ers were dow ngraded to job s at low er rates. U nder the seniority provisions o f the union contract, som e o f these latter workers were n ot dow ngraded in p a y im m ediately. T h e y were p rotected b y a m aintenance-of-w age-rate provision which guaran teed affected workers with 5 or m ore years o f service against a reduction in their rate o f p a y fo r 6 m onths after being reassigned. A m on g the 102 workers w ho retained or bettered their jo b rates were 81 direct operating em ployees, that is, stillmen, operators, and helpers. There was n ot m uch difficulty in reassigning these workers, because the new units used the same jo b classifications and required all the direct operating em ployees displaced from the old pressure stills. T h e rem aining 21 em ployees were cok e cleanout workers on the pressure stills. T h e 62 workers w ho were dow ngraded were the balance o f the crew o f 83 coke cleanout workers. T h e y were displaced because the new equipm ent required on ly 21 men fo r the cleanout. C oke cleanout workers received relatively high w age rates for perform ing physically onerous w ork under unpleasant conditions. W ith the applica tion o f the seniority system, the on ly jo b s open to these 62 workers were as helpers or laborers, which m eant their downgrading. A pproxim ately half o f those dow ngraded had sufficient seniority to be guaranteed against a decrease in their h ourly rate o f p a y for 6 m onths after their transfer. T h e rem ainder, while having placem ent rights, started w ith the low er jo b rate at the tim e o f their transfer. M o s t o f these 62 workers were still em ployed b y the refinery at the tim e o f the study. N o one o f this group had obtained a position w ith a wage rate as high as that for the coke cleanout job . T h e 1954 changes involved the reassignment o f 12 em ployees w ith ou t any downgrading. These em ployees were transferred from the old thermal reform ing unit to the new catalytic reform ing unit, on w hich the same jo b classifications were used. A dvan ce training to operate the new equipm ent was given to b oth operating em ployees and super visors during w orking hours. This training in cluded in-plant classroom instruction and direct observation o f new equipm ent. Since, as already indicated, continuous catalytic cracking repre sented a significant departure from previous p roc essing, training for w ork in this unit was relatively lon g and extensive. Training for supervisors started 6 m onths before the new unit began operating. Stillmen received training for 3 m onths before the startup, and operators and helpers w orkin g in the same process unit as stillmen, for a som ew hat lesser period. Training for operating the catalytic reform er, another new and unfam iliar process, was also quite extensive. D u rin g the training periods, all workers received their regular wage rates and substitute workers were em ployed to fill their regular jobs. Em ploym ent and Occupational Structure T o ta l em ploym ent at the refinery over the 8 years rem ained relatively stable (663 em ployees in 1948, 661 in 1956), with fluctuations resulting m ainly from greater construction a ctivity rather than from any significant changes in operating requirements. Produ ction workers m ade up 84 percent o f the total em ployees in 1949 and 83 percent in 1956. O f the 4 departm ents to w hich produ ction (hourly rated) workers are assigned— operations, m aintenance, laboratory and testing, and m iscel laneous— the first 2 em ploy approxim ately 90 percent o f the h ourly rated workers. A b o u t 50 percent are in operations and 40 percent in maintenance. A lthough the overall num bers em ployed in the tw o m ajor departm ents have n ot changed greatly, there have been several n otew orth y shifts in the num ber o f workers required in individual jo b classifications. In the operations departm ent, the num ber o f em ployees required for direct process ing jo b s increased substantially. T h e num ber o f stillmen increased b y 17 percent, operators b y abou t 6 percent, and helpers b y 69 percent. T h e large increase in the helper classification was P ercen tage d is trib u tio n , a t 1 9 5 6 wage rates , o f re q u ire d h o u rly ra ted w orkers 1 in a n o il re fin e ry , by 1 9 4 8 a n d 1 9 6 6 o c c u p a tio n a l d is trib u tio n 1948 occupational distribution 1956 hourly wage rate $3 and over____ __ ____________ $2.90-$2.99.......... ...... .............. ......... $2.80-$2.89..................................... . $2.70-$2.79........................... ............. $2.60-$2.69............... ........................ $2.50-$2.59____ __________________ $2.40-$2.49_____ _________________ $2.30-$2.39......................................... $2.20-$2.29.......... ............................... Total........ .......................... . Number of workers3_____________ Average (weighted)3 hourly rate.— All hourly rated em ployees 0.4 7.9 33.9 24.6 4.2 3.3 15.3 Opera tions 13.3 58.7 15.4 5.6 .5 6.5 10.4 Mainte nance Laboratory and testing Miscella neous 0.9 25.6 12.8 21.5 17.9 17.9 4.3 8.1 37.7 1.3 5.8 23.3 22.9 16.3 55.3 28.4 All hourly rated em ployees 0.2 8.9 24.5 33.3 5.3 3.3 19.1 .2 5.2 Opera tions 14.9 42.8 25.1 6.6 0.5 10.1 Mainte nance 0.1 5.7 47.9 1.4 5.7 29.6 9.6 Laboratory and testing 24.2 12.1 18.2 25.5 12.7 3.0 4.3 Miscella neous 58.3 41.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 556.0 $2,686 285.0 $2,796 223.0 $2,568 23.4 $2,742 24.6 $2,442 561.0 $2,691 281.2 $2,764 230.0 $2,620 33.0 $2,732 16.8 $2,362 i Workers required by the staffing pattern for a 168-hour week. 3 Excludes supervisors and administrative personnel; the number of hourly rated workers shown does not necessarily represent the actual number of such workers on the payroll. 1956 occupational distribution * The rate for each job classification was weighted by the number of jobs in that classification, 90 a t t r ib u t a b le p r in c ip a lly t o a n e ffo r t t o d e v e lo p a h a v e r e c e iv e d t h e ir t r a in in g o n t h e j o b , t h e ir sk ills la r g e r n u m b e r o f w o r k e r s q u a lifie d t o s t a ff th e a n d k n o w le d g e o f t h e s e p a r a te p r o c e s s u n its . d ir e c t ly r e la t e d t o t h e p la n t ’s n e e d s. T h e s e in c r e a s e s w e r e o f f s e t b y a la r g e r e d u c t io n in t h e n u m b e r o f c o k e c le a n o u t w o r k e r s . S h u t t in g d o w n t h e p r e ss u r e tra d e are m ore or less T h e d u t ie s o f t h e la b o r a t o r y a n d t e s t in g jo b s r e q u ir e p r o fe s s io n a lly t r a in e d c h e m is t s t o m a k e stills r e d u c e d th e r e q u ir e d n u m b e r o f w o r k e r s in r o u t in e c h e m ic a l te s ts t o th is j o b c la s s ific a tio n b y 8 5 p e r c e n t , a s p r e v io u s ly r a t in g in d ic a t e d . A b a c h e lo r ’s d e g r e e in c h e m is t r y is a r e q u ir e m e n t D u r in g 1 9 4 9 -5 6 , th e m a in t e n a n c e and d e t e r m in e t h e o c t a n e o th e r m ea su res of p rod u ct q u a lit y . d e p a r t m e n t e x p e r ie n c e d in c r e a s e s in th e in s t r u f o r th e s e w o r k e r s . m ent ers, la b o r a t o r y e m p lo y e e s a r e p a id o n a n h o u r ly r e p a ir m a n and p ip e fit t e r c la s s ific a tio n s . I n c r e a s e d in s t r u m e n t a t io n m a d e it n e c e s s a r y t o a d d s e v e n m e n t o th e in s t r u m e n t r e p a ir m a n g r o u p w hen th e b a s is a n d a r e c o v e r e d b y t h e u n io n c o n t r a c t . O n e o f t h e m o s t im p o r t a n t p e r s o n n e l d e v e lo p coker m e n t s a t t h e r e fin e r y d u r in g t h e p o s t w a r p e r io d A n in c r e a s e in p ip e fit t e r a n d h a s b e e n t h e r a is in g o f e d u c a t io n a l s t a n d a r d s f o r c a t a ly t ic w e r e in t r o d u c e d . L ik e o t h e r p r o d u c t i o n w o r k cra ck er and d e la y e d p ip e fit t e r ’s h e lp e r j o b s w a s th e r e s u lt o f a n a g r e e b oth m e n t b e t w e e n m a n a g e m e n t a n d u n io n t o m a in ta in 19 48 , th e m a n a g e m e n t a d o p t e d th e r e q u ir e m e n t p r o d u c tio n and s u p e r v is o r y w ork ers. a b a la n c e o f o n e p ip e fit t e r ’ s h e lp e r f o r e a c h p ip e o f a h ig h s c h o o l e d u c a t io n f o r e m p lo y m e n t . fit te r , as w e ll as t h e g r e a te r n e e d f o r th e ir s e r v ic e s 1953, in m a in ta in in g th e p la n t . a p p lic a n t s f o r p r o d u c t i o n jo b s . T h e la b o r a t o r y and t e s t in g g r o u p a lso s h o w e d s o m e in cr e a s e . On th e a d m in is t r a t iv e s ta ff, th e a p r e e m p lo y m e n t te s t w as In In d e s ig n e d fo r T h e te s t a t t e m p t s t o d e t e r m in e a n in d iv id u a l’s a b ili t y t o m e m o r iz e , m ost n ote c o n c e n t r a t e , o b s e r v e , a n d fo llo w in s t r u c t io n s . w o r t h y c h a n g e w a s a r e o r g a n iz a t io n o f fu n c t io n s covers m a t h e m a t ic a l k n o w le d g e th rou g h It th e a n d th e c r e a t io n o f th r e e a s s is ta n t p la n t m a n a g e r s e c o n d -y e a r h ig h s c h o o l le v e l, i. e ., a lg e b r a a n d p o s it io n s w h ic h g a v e g r e a te r r e c o g n it io n t o th e g e o m e try . e n g in e e r in g a n d p e r s o n n e l fu n c t io n s . fic a t io n s o u g h t in s e le c t in g s u p e r v is o r s . A n e n g in e e r in g d e g r e e is n o w a q u a li T h e q u e s t io n o f m o r e s t r in g e n t p e r s o n a l q u a lifi c a t io n s fig u r e d in a d is p u te b e t w e e n m a n a g e m e n t J o b C o n te n t a n d C h a n g in g R e q u ir e m e n ts a n d u n io n in 1 9 5 4 o v e r a s e n io r it y p r o v is io n in th e M o r e a u t o m a t ic p r o c e s s in g m o d ifie d s o m e d e a g r e e m e n t. The p r o v is io n read, in p a rt, “ S e n io r e m p lo y e e s e lig ib le u n d e r th is a r tic le sh all ta ils o f p r o d u c t i o n j o b s in t h e o p e r a t io n s d e p a r t b e g iv e n p r e fe r e n c e o n m e n t b u t d id n o t r e q u ir e n e w j o b c la s s ific a tio n s . th e ir c h o ic e o f w o r k r o u t e a d v a n c e m e n t .” T h e d u tie s o f s tillm e n , o p e r a t o r s , a n d h e lp e r s — com pan y fe lt th a t (s u c h ) jo b s in lin e w it h th e w o r d “ e lig ib le ” The im p lie d th e p r in c ip a l o p e r a t in g jo b s — n o w in v o l v e m o r e t h a t fa c t o r s o t h e r th a n s e n io r it y c o u ld b e c o n m o n it o r in g less s id e r e d in fillin g p o s t e d jo b s . The w as d ir e c t by m eans m anual of in s t r u m e n ts m a n ip u la t io n of and c o n t r o ls . th a t th e w ord T h e u n io n ’s p o s it io n r e fe r r e d o n ly to s e n io r it y m o s t d r a s t ic c h a n g e o c c u r r e d o n t h e c o k e c le a n o u t e lig ib ilit y . j o b , w h e r e m e c h a n ic a l e q u ip m e n t w a s s u b s t it u t e d f o r h a n d la b o r . t io n , w h ic h r e s u lte d in a d e c is io n s u p p o r t in g th e The w ork e x te n s iv e of m a in ta in in g e q u ip m e n t r e p a ir in g t h e r e fin e r y th e engages com p a n y . T h is s a m e p r o b le m issu es in a 19 56 w o r k s t o p p a g e . w as one o f th e T h e con tra ct end a in g t h e s t r ik e p r o v i d e d t h a t w h e n a j o b v a c a n c y is la r g e g r o u p o f c r a fts m e n in t h e m e t a l a n d o t h e r a n n o u n c e d , it m u s t b e g iv e n t o t h e s e n io r p la n t tr a d e s : p ip e fitte r s , w e ld e r s , m a c h in is ts , p a in te r s , a p p lic a n t in lin e f o r th e j o b f o r a t r ia l p e r io d o f e le c tr ic ia n s . at and T h e is su e w a s s u b m it t e d t o a r b itr a T h e s e c r a ft s m e n p e r fo r m jo b s s im i 30 d a y s . S in c e th is a g r e e m e n t, a p p r o x im a t e ly 4 0 la r t o w o r k e r s in th e ir tr a d e s in in d u s t r y a n d j o b s h a v e b e e n p o s t e d a n d fille d b y c o n s t r u c t io n . person . O n ly c a r p e n t e r s , m a c h in is ts , a n d t h e s e n io r I n e a c h c a s e , t h e e m p lo y e e h a s fin is h e d b r ic k m a s o n s a r e h ir e d d ir e c t ly as f u lly q u a lifie d h is tr ia l p e r io d w it h o u t a n y q u e s t io n s r a is e d a b o u t jo u r n e y m e n . h is q u a lific a t io n s . S in c e m o s t o f th e o t h e r c r a fts m e n 91 A ttitu d e s o f C o m p a n y a n d I t s W o r k e r s W a g e S tru c tu re a n d C h a n g e s P r o d u c t i o n w o r k e r s in th is c o n t in u o u s p r o c e s s p la n t r e c e iv e r e la t iv e ly h ig h w a g e r a te s , c o m p a r e d w it h f a c t o r y w o r k e r s g e n e r a lly . I n 1956, a m o n g th e o p e r a t in g w o r k e r s , s t illm e n r e c e iv e d $ 2 .9 9 a n The com pany e m p h a s iz e s th e a d va n ta g es of g r e a te r o u t p u t , im p r o v e d q u a lit y , a n d lo w e r c o s t s o f p r o d u c t i o n in m e e t in g c o m p e t i t io n . B ecau se r e fin e r y p r o c e s s e s a re c o n s t a n t l y c h a n g in g , o ffic ia ls h o u r , o p e r a t o r s , $ 2 .8 0 a n h o u r , a n d h e lp e r s , $ 2 .7 1 b e lie v e t h a t i t is im p o r t a n t t o h a v e a w o r k f o r c e an h our. w h ic h is a d a p t a b le a n d w h ic h c a n b e e a s ily r e I n th e m a in t e n a n c e d e p a r t m e n t , e x c e p t f o r a b r ic k m a s o n a t $ 3 .0 5 a n h o u r , all o t h e r c r a ft s m e n r e c e iv e d $ 2 .7 7 a n h o u r a n d c r a ft s m a n h e lp e r s tr a in e d . T h e u n io n s p o k e s m e n c it e b e n e fit s in le s s se a s o n a l flu c t u a t io n in e m p lo y m e n t , a n d s a fe r a n d w e r e p a id $ 2 .4 7 a n h o u r . C h a n g e s in j o b r e q u ir e m e n t s o v e r th e 1 9 4 8 -5 6 l ess o n e r o u s w o r k in g c o n d it io n s , as a r e s u lt o f th e p e r io d le f t th e o v e r a ll a v e r a g e g r a d e o f p r o d u c t i o n new w o r k e r s v ir t u a lly u n c h a n g e d . im p o r t a n c e T h u s , th e a v e r a g e w a g e r a te in 19 56 w a s a b o u t th e s a m e as th e c o m p r o c e s s in g m e t h o d s . of th e T hey s e n io r it y , e m p h a s iz e th e m a in t e n a n c e -o f- w a g e s , a n d t r a in in g m e a s u r e s in t h e ir c o lle c t iv e p a r a b le a v e r a g e f o r 19 4 8 — i f th e e ffe c t o f g e n e r a l b a r g a in in g a g r e e m e n t in m e e t in g th e p r o b le m s o f w age w o r k e r a d ju s t m e n t . in c r e a s e s is e lim in a t e d . In m a k in g th e c o m p a r is o n , th e r a t e f o r e a c h j o b c la s s ific a tio n w a s L o o k i n g fo r w a r d , th e u n io n o ffic ia ls fe e l p a r w e ig h t e d b y t h e n u m b e r o f p e r s o n s s h o w n o n th e t ic u la r ly c o n c e r n e d a b o u t th e im p a c t o n j o b o p p o r s t a ffin g p a t t e r n f o r e a c h y e a r in t h a t c la s s ific a tio n . (S e e ta b le .) in d u s t r y t o tu r n o v e r t o s p e c ia l c o n t r a c t o r s c e r t a in W age r a te s ad va n ced each th ro u g h 1956, e x ce p t fo r 1954. year fr o m 19 4 8 T h e w a ge ch a n ges tu n itie s o f th e g r o w in g t e n d e n c y e ls e w h e r e in th e ty p e s o f m a in t e n a n c e w o r k a t r e fin e r ie s . n e g o t ia t e d d u r in g th e p e r io d w e r e a ll a c r o s s -t h e - th a n b o a r d g e n e r a l in cr e a s e s . cha nge. N o s p e c ia l r a t e s h a v e b e e n e s t a b lis h e d a s a r e s u lt o f th e m o d e r n iz a t io n program . 92 I n th e ir v ie w , th is t r e n d m a y m e a n a g r e a te r lo s s o f j o b s th e g ra d u a l in t r o d u c t io n — H of erm an t e c h n o lo g ic a l J. R othberg D ivision o f Productivity and Technological Developm ents P rio r R e se r v a tio n S y s te m A d ju s t m e n t to a n A u to m a t ic A ir lin e R e s e r v a t io n S y s t e m T h e in t r o d u c t io n o f th e e le c t r o n ic r e s e r v a t io n s y s t e m a t A ir lin e X , in J u ly 1 9 5 2 , w a s in t e n d e d t o I n s t a l l a t i o n o f a n a u t o m a t ic r e s e r v a t io n s y s t e m f a c ilit a t e th e h a n d lin g o f a g r o w in g v o lu m e o f a t a la r g e a irlin e r e s e r v a t io n o ffic e m a r k e d th e r e q u e s t s a n d t o s e c u r e a g r e a te r d e g r e e o f c o n t r o l b e g in n in g o f a m a jo r d e v e lo p m e n t in th e a p p lic a over t io n o f e le c t r o n ic s t o a irlin e o ffic e w o r k . A t th is m e t h o d , t ic k e t sa les o r c a n c e lla t io n s w e r e p o s t e d m a jo r te r m in a l, s o m e o ffic e jo b s w e r e u p g r a d e d as m a n u a lly t o a le d g e r w h ic h r e c o r d e d th e s p e c ific flig h t sp ace in v e n t o r y . U nder th e o ld a r e s u lt o f a d o p t in g t h e n e w s y s t e m , a n d n e w t r ip , t e c h n ic a l crea ted . r e s u lt e d in th e s e llo u t o f a flig h t, th is in fo r m a t io n S im u lta n e o u s e x p a n s io n o f o ffic e fu n c t io n s , c o u p le d w a s p r o v i d e d t o t h e o p e r a t o r o f t h e v is u a l q u o t a w it h and p r o fe s s io n a l jo b s p la n n e d w o r k e r e d u c a t io n w ere a n d r e tr a in in g , t io n d a te , and d e s t in a t io n . W hen an e n try (a v a ila b ilit y ) b o a r d a n d u lt im a t e ly t o o t h e r p r e v e n t e d p e r s o n n e l d is lo c a t io n , e v e n t h o u g h th e r e s e r v a t io n la b o r s a v in g s w e r e s u b s ta n t ia l. e r r o r s in h e r e n t in th is s y s t e m , b u t it w a s a n t i c i W it h th e num ber of pa ssen gers c a r r ie d by o ffic e s . N ot o n ly w ere d e la y s and p a t e d t h a t m a n u a l in v e n t o r y in g m e t h o d s w o u ld s c h e d u le d a irlin e s in c r e a s in g t o 50 m illio n in 19 57 , becom e m o r e t h a n 3 t im e s as m a n y as in 19 47 , m a n u a l p a n d e d , w it h e x p e n s e r is in g o u t o f p r o p o r t io n t o o ffic e th e in c r e a s e in w o r k lo a d . m eth od s had becom e a b o t t le n e c k h a n d lin g flig h t s p a c e r e s e r v a tio n s . in in c r e a s in g ly c u m b e r s o m e as t r a ffic ex A u to m a tio n w a s fir s t in t r o d u c e d b y th e s e lin e s in 19 52 a n d b y D e v e lo p m e n t o f th e E le c tr o n ic S y s te m 1 9 5 9 , v ir t u a lly a ll o f th e 12 la r g e d o m e s t i c tr u n k P la n n in g f o r a n e w s y s t e m o f r e s e r v a t io n c o n t r o l lin e s w ill h a v e in s ta lle d a n a u t o m a t ic r e s e r v a t io n sy stem . T o g e t h e r , th e 12 a irlin e s c a r r y m o s t o f w a s s t a r t e d d u r in g W o r l d W a r I I . A sy stem w as 1 6 ,0 0 0 b u il t b y a n o u t s id e fir m t o th e a ir lin e 's s p e c ific a t i c k e t a n d r e s e r v a t io n e m p lo y e e s — a b o u t 16 p e r t io n s , s u b s e q u e n t t o e x p e r im e n t a t io n b y a c o m c e n t o f a ll p e r s o n s e m p lo y e d b y th e s e lin e s . p a n y e n g in e e r . U n d e r t h e p r e s e n t e le c t r o n ic r e s e r v a t io n s y s t e m , th e a irlin e pa ssen gers A u to m a tic d a ta and have p r o c e s s in g n e a r ly is o n e of a w id e v a r ie t y o f t e c h n o lo g ic a l c h a n g e s t a k in g p la c e in th e a irlin e in d u s t r y . O th e r im p o r t a n t in n o v a t io n s in th is fa s t e x p a n d in g in d u s t r y in c lu d e th e in t r o d u c t io n of h ig h -s p e e d , je t a ir c r a ft , th e g r o w t h o f h e lic o p t e r t a x i s e r v ic e , m e c h a n iz a t io n o f b a g g a g e a n d fr e ig h t h a n d lin g , a n d t h e im p r o v e m e n t o f a ir n a v ig a t io n a n d tr a ffic c o n t r o ls t h r o u g h T h e p la n n in g a n d d e v e lo p m e n t o f o n e o f th e a u t o m a t ic r e s e r v a t io n a irlin e , and sa le s agent som e of th e sy stem s by im p lic a t io n s a la r g e fo r th e w o r k e r s a ffe c t e d , a r e d e s c r ib e d in a c a s e s t u d y b y th e U . S. D e p a r tm e n t o f L a b o r s B u re a u o f L a b o r S t a t is t ic s .1 The d e s c r ip t io n , th o u g h not in t e n d e d t o b e t y p ic a l o f c h a n g e s a t o t h e r c o m ch eck s a v a i la b ilit y of sp ace by in s e r tin g a d e s t in a t io n p la t e in t o h is h a n d s e t (a m e t a l b o x lik e d e v ic e o n h is d e s k ) a n d p r e s s in g b u t t o n s c o r r e s p o n d in g t o t h e d a t e o f t h e flig h t and th e num ber of s e a ts d e s ir e d . If sp ace a v a ila b le , a lig h t is illu m in a t e d o n t h e s e t . is At t h e s a m e tim e , a v a i la b ilit y o f a lt e r n a t e flig h ts is in d ic a t e d . e le c tr o n ic s . fir s t a e le c t r o n ic In essen ce, s ig n a ls th e in s t e a d c o m m u n ic a t in g r e s e r v a t io n new of oral sy stem u se s m essa ges in d a t a , a n d e le c t r o n ic in s t e a d o f m a n u a l m e t h o d s in filin g a n d s e a r c h in g in fo r m a t io n . P ro d u c tiv ity a n d D isp la c e m e n t T h e e x p e r ie n c e o f A ir lin e X s u g g e s ts t h a t th e p a n ie s , s h o u ld b e u s e fu l in in d ic a t in g t h e g e n e r a l s ig n ific a n t la b o r s a v in g s in c e r t a in r e c o r d k e e p in g n a tu r e o f th e d e v e lo p m e n t s t h a t m a y o c c u r a t th e fu n c t io n s c a n b e h a n d le d w it h o u t d is lo c a t io n o f o ffic e o ffic e p e r s o n n e l, e s p e c ia lly if in t r o d u c e d d u r in g a le v e l as s im ila r e le c t r o n ic sy stem s are in t r o d u c e d . p e r io d o f r a p id a n d e x te n s iv e g r o w t h in th e r e s e r » A Case Study of an Automatic Airline Reservation System, BLS Report 137. This study, based on interviews with management officials, observation of employees at work (the office employees were not organized), and analysis of occupational and other records, is the fifth in a series of case studies on automatic technology. v a t i o n o ffic e 's a c t iv it ie s . S e p te m b e r 1958 93 th e new sy stem w as O n e ta n g ib le r e s u lt o f a r e d u c t io n of about 85 p e r c e n t in th e u n it m a n -y e a r s r e q u ir e d f o r th e in v e n t o r y fu n c t io n . A tota l of 32 m a n -y e a r s , p o s t in g e a c h sa le o n a sa les c o n t r o l c h a r t a n d th e a b o u t 11 p e r c e n t o f th e t o t a l m a n -y e a r s u t iliz e d cu m bersom e in b o a r d t o d e n o t e a v a ila b ilit y o f flig h t s p a c e w e r e th is r e s e r v a tio n o ffic e in 1952, w ere saved. m eth od of u s in g a v is u a l d is p la y H o w e v e r , s in c e m a n p o w e r r e q u ir e m e n t s in o ffic e b oth fu n c t io n s n o t d ir e c t ly a ffe c t e d b y th e n e w s y s t e m la r g e m e n t o f w e r e r a p id ly e x p a n d in g a t th e a irlin e s t u d ie d , it o f “ c le r k ” w a s r e p la c e d b y “ s a le s ” o r “ s e r v ic e ” e lim in a t e d . O ne w a s p o s s ib le t o a b s o r b th e se la b o r s a v in g s w it h o u t a g e n t. d is p la c e m e n t o f a n y in d iv id u a l e m p lo y e e . p lo y e e s w h o p e r fo r m M ore An o v e r , s in c e in v e n t o r y in g flig h t s p a c e a n d p o s t in g (R e s e r v is o r flig h t s t a t u s w e r e S p e c ia lis t. o n ly p a rt o f several c le r ic a l o u tco m e w as t h e sa le s fu n c t io n . u p g r a d in g to o k p la c e fo r en title tw o em th e f u n c t io n s o f S p e c ia lis t In fo rm a tio n ) T h ese som e T h e jo b tw o and new A s s is t a n t jo b s , to d ir e c t ly th e con d u tie s p e r fo r m e d b y e a c h r e s e r v a tio n a g e n t, n o s p e c ific in d iv id u a l j o b w a s e lim in a t e d . A c t u a l ly , p r e p a r a t io n o f d a t a o n s e a tin g c a p a c it y a n d o n th e n u m b e r o f e m p lo y e e s a t th e o ffic e s t u d ie d f lig h t s c h e d u lin g a n d th e a p p lic a t io n o f c o m p le x in c r e a s e d f r o m 2 9 5 , a t th e tim e o f in s t a lla tio n o f r e s e r v a t io n p r o c e d u r e s . n ected th e c o m p u t e r in J u n e 1 9 5 2 , t o 5 2 9 in J u n e 19 56 . The m a n a g e m e n t o f A ir lin e X w it h th e a u t o m a t ic s y s t e m , in v o l v e th e T h e c o m p a n y in it ia t e d a s p e c ia l t r a in in g p r o m a d e s p e c ia l g ra m f o r s u p e r v is o r s , w h o s u b s e q u e n t ly t r a in e d e ffo r t s t o d is p e l a n y fe a r s o f d is p la c e m e n t a n d to r e s e r v a t io n tr a in its e m p lo y e e s in th e o p e r a t io n o f th e n e w s t r u c t o r s b e g a n w h ile th e e q u ip m e n t w a s b e in g e q u ip m e n t . The p erson n el o ffic e in fo r m e d all in s t a lle d . e m p lo y e e s . C la s s e s f o r t r a in in g in A b o u t 4 0 s u p e r v is o r s a n d le a d a g e n ts e m p lo y e e s t h a t n o o n e w o u ld b e la id o f f o r d o w n r e c e iv e d a w e e k ’s in s t r u c t io n fr o m th e c o m p a n y ’s g r a d e d as a r e s u lt o f th e c h a n g e s . S t o r ie s p u b r e s e a r c h e n g in e e r o n th e o p e r a t io n o f th e a g e n t ’s lis h e d in th e c o m p a n y ’s h o u s e o r g a n d e s c r ib e d th e h a n d s e t a n d th e b r o a d e r a s p e c ts o f th e r e s e r v a t io n s y s t e m , e m p h a s iz in g it s v a lu e t o th e sa les a g e n t in sy stem . m in im iz in g t e le p h o n e ca lls a n d fa c ilit a t in g s a le s .2 f o r u se in tr a in in g sa les e m p lo y e e s o n t h e j o b . T r a in in g a n d J o b C h a n g e s c a r r ie d o n as a r e g u la r p a r t o f th e b a s ic c la s s r o o m An in s t r u c t o r ’s I n s t r u c t io n o n m anual w as prepared th e r e s e r v a t io n s y s t e m is n o w p r o g r a m f o r in d o c t r in a t in g n e w sa les p e r s o n n e l. O ffic e J obs. In g e n e r a l, o ffic e e m p lo y e e s in R e c e n t l y , th e a irlin e le n g t h e n e d th is in d o c t r in a X a ir lin e ’s r e s e r v a t io n w o r k w e r e y o u n g p e r s o n s , a tio n tr a in in g — w h ic h h a d c o v e r e d f r o m 5 t o 7 d a y s — la r g e p r o p o r t io n o f w h o m w e r e g irls. A c c o r d in g t o 8 t o 10 d a y s . to c o n s id e r e d t h e - jo b w ere p lo y e e com p a n y th e m s e lv e s age 40. o ffic ia ls , career r e la t iv e ly e m p lo y e e s . T h e p o lic y o f fe w Few over A fte r a w eek o f su b se q u e n t o n - tr a in in g , u n d e r h is s u p e r v is o r , r e c e iv e s an a d d it io n a l 2 6 -3 3 th e h ours em of a d v a n c e d c la s s r o o m in s t r u c t io n . th e a irlin e w a s t o h ir e c le r ic a l a n d sa le s e m p lo y e e s a t th e lo w e s t g r a d e a n d to p r o m o te th em w hen a v a ila b le , a b ilit y . on t o h ig h e r p a id p o s it io n s , th e b a s is of s e n io r it y T e c h n ic ia n J o b s and . S e v e n n e w te c h n ic ia n j o b s w e r e s e t u p in c o n n e c t io n w it h m a in t a in in g th e n e w A ll e m p lo y e e s w e r e p a id o n a m o n t h ly sy stem . The t e c h n ic ia n s , w h o w e r e p r e v i o u s ly s a la r y b a s is ; c o m m is s io n s o r o t h e r in c e n t iv e p a y e m p lo y e d as r e p a ir m e n in th e a ir lin e ’ s r a d io s h o p , m e n t s w e r e n o t p a id to r e s e r v a t io n e m p lo y e e s . had T h e ch an geover to th e a u t o m a t ic r e s e r v a t io n w ork ed m e n t. d ir e c t ly and co n s ta n tly on e q u ip I n c o n t r a s t , th e te c h n ic ia n n o w w o r k s a lo n e s y s t e m b r o u g h t a b o u t m o d ific a t io n s in th e c o n - in a n a ir -c o n d it io n e d , n o is e le s s c o n t r o l r o o m . ten t o f o f f ic e jo b s . w o r k s in h is s t r e e t c lo t h e s , a n d th e o n ly tim e h e h a s T h e s t r i c t ly r o u t in e ta s k s o f 1 The attitude of reservation employees, so far as it could be ascertained, appeared to be one of acceptance of the new techniques as a tool of their job. This viewpoint was particularly emphasized in responses of agents in an opinion poll conducted by the airline at the office where a first experimental system was installed in 1946. These agents unanimously agreed that the new system was a convenience to them on their job and helped them to serve the passengers. The favorable reactions of these employees weie cited in persuading top officials to extend the experimental system, in 1962, to the major terminal. 9h He d ir e c t c o n t a c t w it h th e a u t o m a t ic e q u ip m e n t is d u r in g p r e v e n t i v e m a in t e n a n c e te s ts o r o n c a s io n s w h e n th e e q u ip m e n t is o u t o f o r d e r . oc The t e c h n ic ia n s w e r e g iv e n s p e c ia liz e d tr a in in g b y th e m a n u fa c t u r e r o f th e s y s t e m , a n d a t t e n d e d c la s se s 1 d a y a w eek fo r a b o u t 6 m on th s. T h o u g h th e a c t u a l le v e l o f k n o w le d g e r e q u ir e d to m a in ta in th e r e s e r v a t io n e q u ip m e n t is O u tlo o k not g r e a t e r th a n t h a t r e q u ir e d f o r ta s k s p r e v i o u s ly C o m p a n y o ffic ia ls v ie w t h e a u t o m a t ic r e s e r v a p e r fo r m e d in th e r a d io m a in t e n a n c e s h o p , i t h a s t io n s y s t e m a s a m a jo r fir s t s t e p in in t r o d u c in g now a u t o m a t io n in t o th e a ir lin e ’ s c o m p le x d a t a - p r o c becom e assu m e m ent n ecessa ry fo r th e in d iv id u a l r e s p o n s ib ilit y and to w ork under t e c h n ic ia n s fo r pressu re to th e e q u ip and o fte n e ss in g a c t iv it ie s . M o r e o v e r , it is a n t ic ip a t e d t h a t a ll th e la r g e r e s e r v a t io n o ffic e s m i g h t e v e n t u a lly w it h o u t s u p e r v is io n , w h e n e v e r th e e q u ip m e n t is be out s e r v ic e s am ong n ected . S u c h d e v e lo p m e n t s m i g h t h a v e a m o r e of ord er. The t e c h n ic ia n ’ s fu n c t io n ch a n g e d fr o m th a t o f a “ p r o d u c t io n p a ir m a n w ork ed o n a v a r ie t y w ho e q u ip m e n t to th a t of a s k ille d ty p e” of has re c o m p le x jo i n e d to g e th e r in th e one vast d iffe r e n t n e tw o rk , and a irlin e s in t e r c o n m a r k e d im p a c t o n a irlin e o ffic e e m p lo y m e n t t h a n th e u se o f e le c t r o n ic d a t a p r o c e s s in g in r e s e r v a t io n “ w a tch m a n ” w h o s e ta s k is t o m a in t a in o n e p ie c e o f e q u ip m e n t w ork v i t a l to th e c o m p a n y ’ s sa les o p e r a t io n s . p r o c e s s in g , s u c h as r e v e n u e a n d t i c k e t a c c o u n t in g , so fa r . O th e r a re a s of e le c t r o n ic d a ta a re b e in g e x p lo r e d . P r o fe s s io n a l J obs. A g r o u p o f p r o fe s s io n a l jo b s A n t i c ip a t i n g t r a n s it io n t o th e “ j e t a g e ,” s o m e c o n c e r n e d w it h e le c t r o n ic d a t a -p r o c e s s in g r e s e a r c h a irlin e w as c u p a t io n s w ill b e a ls o cre a te d , fo llo w in g n e w r ° jr v a t i o n s y s t e m . tr a in e d person s p e r fo r m sy stem s advent of th e T h is g r o u p is c o m p r is e d o f fiv e “ s y s t e m s e n g in e e r s .” p la n n in g th e T h e s e p r o fe s s io n a lly d u t ie s d e v e lo p m e n t w h ic h and in v o lv e e x t e n d in g o ffic ia ls b e lie v e th a t w h ereas som e oc e lim in a t e d , w h o le s a le d is lo c a t io n s n e e d n o t o c c u r p r o v i d e d th e c h a n g e s a r e g r a d u a l a n d w o r k e r s a re r e tr a in e d f o r n e w p o s it io n s c o n n e c t e d w ith th e p la n n in g , p r o g r a m m in g , a n d o p e r a t io n of th e e le c t r o n ic sy stem s. T h ese e le c t r o n ic m e t h o d s t o a ll c le r ic a l a c t iv it ie s o f th e o ffic ia ls a r e o f th e o p in io n t h a t t h e y m a y n e e d a com pan y. m o r e c o m p le t e a n d s p e c ific in v e n t o r y o f th e s k ills T h e ir a n n u a l s a la rie s s t a r t a t $ 7 ,0 0 0 . T h e q u a lific a t io n s f o r s y s t e m s e n g in e e r s in c lu d e a n d e d u c a t io n a l a t t a in m e n t s o f e d u c a t io n a t c o lle g e le v e l a n d c o v e r a v a r ie t y o f t h a n is a v a ila b le a t p r e s e n t, t o fa c ilit a t e r e t r a in in g a ir lin e e x p e r ie n c e . a n d r e a s s ig n m e n t . I t is in te r e s t in g t o n o t e t h a t th e ir e m p lo y e e s 4 o f th e 5 m e n in th e g r o u p h a v e c o lle g e d e g r e e s in b u s in e s s a d m in is t r a t io n a n d th e s o c ia l s c ie n c e s . A l l h a v e h a d c o n s id e r a b le a n d v a r ie d w o r k e x p e r ie n c e w it h th e c o m p a n y . 9$ — E dw ard B . J aku batjsk as D ivision o f P roductivity and Technological D evelopm ents E x p e r ie n c e s W it h t h e In t r o d u c t io n tu rn o v e r. S in c e t h e i n t r o d u c t io n is a lo n g c o n t in u in g p r o c e s s , w it h n e w a p p lic a t io n s b e i n g m a d e o f O f f ic e A u to m a tio n s t e p b y s t e p , th e fu ll im p a c t w a s n o t f e lt a t th e t im e t h e n e w e q u ip m e n t b e g a n t o o p e r a t e . T he W h ile o f e le c t r o n ic d a t a p r o c e s s in g in t r o d u c t io n th e in t r o d u c t io n of e le c t r o n ic d a ta im p o r t a n t p r o c e s s in g r e d u c e d t h e d e m a n d f o r e m p lo y e e s in c h a n g e s in e m p lo y m e n t f o r a b r o a d c la s s o f w o r k e r s r o u t in e p o s it io n s , i t o p e n e d u p a r e la t iv e l y s m a ll a n d h a s b r o u g h t c o n c e r n o v e r t h e p r o b le m s o f n u m b e r o f b e t t e r p a id p o s it io n s f o r p r o g r a m m in g a d ju s t m e n t t o th is in n o v a t io n . a n d o p e r a t in g t h e n e w s y s t e m s . in b u s in e s s o ffic e s seem s to i m p ly In an a tte m p t to A d m in is t e r in g fin d o u t w h a t p r o b le m s a r e i n v o l v e d w it h in a n a p t it u d e t e s ts f o r th e s e n e w j o b s , s e le c t in g a s t a ff, o ffic e a n d h o w t h e y a re b e in g s o lv e d , t h e B u r e a u d e t e r m in in g s a la rie s a n d p r o v i d in g t h e e x t e n s iv e o f L a b o r S t a t is t ic s u n d e r t o o k a s t u d y o f 2 0 o ffic e s tr a in in g n e c e s s a r y , b o t h in t h e c la s s r o o m a n d o n w h ic h h a d in s t a lle d la r g e -s c a le e le c t r o n ic c o m p u t th e jo b , e rs a t t e n t io n . fo r p r o c e s s in g b u s in e s s d a t a .1 T h is a r tic le w e r e c r it ic a l m a t t e r s r e q u ir in g t i m e ly W h e r e t h e o ffic e s w e r e o r g a n iz e d b y s u m m a r iz e s th e p r in c ip a l fin d in g s o f t h e s t u d y , u n io n s , one w h ic h c o v e r e d a v a r ie t y o f s u b j e c t s : T h e o b j e c w h e t h e r t h e n e w p o s it io n s w o u l d b e w it h in t h e of th e key is su e s th a t arose w as t iv e s a n d r e s u lts o f e le c t r o n ic d a t a p r o c e s s in g ; c o lle c t iv e b a r g a in in g u n it . th e e x t e n t o f d is p la c e m e n t a n d r e a s s ig n m e n t o f T h e o ffic e s in th is s t u d y — t h e s m a lle s t e m p lo y e d o ffic e e m p lo y e e s ; t h e p r a c t ic e s r e g a r d in g tr a n s 7 0 0 w o r k e r s — w e r e a b le t o s t a ff th e ir e le c t r o n ic fe r r in g , r e tr a in in g , u n it s and s e le c t in g e m p lo y e e s f o r p r im a r ily th rou g h p r o m o t io n s . T h ose n e w o c c u p a t io n s ; t h e c h a r a c t e r is t ic s o f e m p lo y e e s s e le c t e d w e r e c h ie fly m e n in th e ir la t e tw e n t ie s w h o s e j o b s w e r e e lim in a t e d a n d w h o w e r e a s s ig n e d w it h s o m e c o lle g e e d u c a t io n a n d s o m e c o m p a n y t o n e w p o s it io n s ; a n d s o m e o f t h e im p lic a t io n s e x p e r ie n c e in a c c o u n t in g a n d r e la t e d w o r k . o f o ffic e a u t o m a t io n f o r m id d le -a g e d a n d o ld e r w om en, e m p lo y e e s . a ffe c t e d u n it s w e r e c h o s e n f o r t h e n e w l y c r e a t e d The i n t r o d u c t io n of a la r g e -s c a le t h e s a m e o r fe w e r e m p lo y e e s — a m a jo r o b j e c t i v e — In fo rm a tio n b u t a ls o e c o n o m ie s in p r o c e s s in g tim e , s p a c e , a n d BLS I n s o m e o ffic e s fo r th e r e p r e s e n t a t iv e s c o m p ile d e c o n o m ic a l t o a c q u ir e , e n la r g e d t h e c le r ic a l w o r k m a n a g e m e n t ’s th e stu d y th rou g h w as c o lle c t e d by p e r s o n a l v is it s t o S u c h in fo r m a t io n c o n s is t e d o f (1 ) s t a t is t ic a l d a t a o p e r a t in g c o n d it io n s , w h ic h w a s p r e v i o u s ly u n e x t e n d in g Few fr o m o ffic ia ls w h o h a d d ir e c t k n o w le d g e o f t h e c h a n g e s . c r e a s e d f lo w o f in fo r m a t io n o n i n v e n t o r y a n d o t h e r by e m p lo y e e s o ffic e s a n d in t e r v ie w s w it h m a n a g e m e n t a n d u n io n w h i c h w e r e p a r t o f in d u s tr ia l o p e r a t io n s , t h e in but or M e th o d o f D a ta C o lle c tio n a n d C o v e r a g e a la r g e r c le r ic a l o u t p u t in r o u t in e a c t iv it ie s w it h lo a d , w ork ers, p o s it io n s . e le c t r o n ic c o m p u t e r p r o v i d e d a m e a n s o f a c h ie v in g n o t o n l y e q u ip m e n t a n d g r e a te r a c c u r a c y . o ld e r fr o m p erson n el record s and (2 ) non- s t a t is t ic a l r e p o r t s a b o u t p o lic ie s a n d p r a c t ic e s . c o n t r o l, T h e s t u d y w a s lim it e d t o 2 0 p r iv a t e in d u s t r y o p e n e d u p t h e p o s s ib ilit y o f a c h ie v in g s a v in g s in o ffic e s w h ic h w e r e a m o n g t h e fir s t t o u t iliz e la r g e n o n c le r ic a l a c t iv it ie s . e le c t r o n ic d ig it a l c o m p u t e r s y s t e m s f o r b u s in e s s A b o u t o n e -t h ir d o f t h e e m p lo y e e s in t h e o ffic e p u rp oses. T h e s e c o m p u t e r s se ll f o r $1 m illio n o r u n it s d ir e c t ly a ffe c t e d b y t h e c h a n g e w e r e s h ift e d r e n t a t o v e r $ 2 5 ,0 0 0 a m o n t h . t o o t h e r p o s it io n s . s t u d y h a d a t le a s t a y e a r ’ s o p e r a t in g e x p e r ie n c e la id o ff. O n l y a n e g lig ib le n u m b e r w e r e T h e o ffic e s in t h e T h e a d v a n c e d p la n n in g t h a t t o o k p la c e d u r in g t h e l o n g p r e p a r a t o r y p e r io d w a s u s e fu l in e a s in g th e i m p a c t o f th e s e c h a n g e s . S u c h p la n » See' Adjustments to the Introduction of Electronic Data Processing, forthcoming BLS Bull. 1276 (1960). The study presents information on the practices of each office in reassigning, selecting, and training employees in addition to statistical data on the group as a whole. For a report on the vocational implications of electronic data processing, see Automation and Employment Opportunities for Office Workers, BLS Bull. 1241 (1958). For detailed descriptions of the new jobs, see Occupations in Electronic Data Processing Systems, U.S. Department of Labor, Bureau of Employment Security, 1959. n in g i n v o l v e d in fo r m in g a n d c o n s u lt in g w it h e m p lo y e e s a n d t h e ir o r g a n iz a t io n s a b o u t t h e c h a n g e s , e s t a b lis h in g p r o c e d u r e s f o r r e a s s ig n in g e m p lo y e e s w h o s e p o s it io n s w e r e b e i n g e lim in a t e d , a n d th e m in im iz in g o f d is p la c e m e n t t h r o u g h a t t r it io n a n d A p ril 1960 96 They I n th e s e v e n o ffic e s w it h c o lle c t iv e b a r g a in in g o n e -h a lf o f t h e c o m r e la t io n s h ip s , t h e u n io n c o n s t it u t e d th e c h a n n e l b y m id -1 9 5 7 w h e n t h e s t u d y w a s p la n n e d . a c c o u n t e d f o r m o r e th a n p a n ie s w h ic h h a d e x p e r ie n c e in a p p ly in g la r g e - fo r s c a le e le c t r o n ic d a t a -p r o c e s s in g s y s t e m s t o c le r ic a l E x is t in g w o r k a t t h a t t im e . a p p lic a t io n o f s e n io r it y r u le s in d is p la c e m e n t a n d G overnm ent a g e n c ie s , fir m s u s in g c o m p u te rs in fo r m in g e m p lo y e e s con tra cts about p r o v id e d th e cha nges. m a c h in e r y fo r th e t r a n s fe r a n d f o r t h e d e t e r m in a t io n o f w a g e r a te s p r im a r ily f o r e n g in e e r in g , s c ie n tific , o r in d u s tr ia l fo r p u r p o s e s , a n d o ffic e s w it h o n l y s m a ll- a n d m e d iu m - r e g a r d in g a d v a n c e n o t ic e s iz e c o m p u t e r s w e r e o u t s id e th e s c o p e o f th e s t u d y . r e t r a in in g T h e im p lic a t io n s o f c o m p u t e r s e r v ic e c e n t e r s w e r e ch a n ge. a ls o n o t c o v e r e d . o ffic e t o a p p l y th e s y s t e m o f d is p la c e m e n t b e n e fit s T h e 2 0 o ffic e s s t u d ie d w e r e t h e c e n t r a l o r h o m e e c o n o m y , r a n g in g in size fr o m 4 ,0 0 0 . M ost grow n r e la t iv e ly p u b li c u tilitie s , w ere in r a p id ly in th e pa st o ffic e s , and n e g o t ia t e d p r o v is io n s c o n s u l t a t io n as a r e s u lt and of th e A g r e e m e n t w a s r e a c h e d in o n e r a ilr o a d about th a t Im p a c t o f E le c tr o n ic D a ta P r o c e ssin g have decade— E x te n t o f D isp la c e m e n t a n d R e a ssig n m e n t. A year f o llo w in g t h e i n t r o d u c t io n o f th e c o m p u t e r , a b o u t a ir c r a ft. o n e -t h ir d o f t h e 2 ,8 0 0 e m p lo y e e s in u n it s w h o s e O th e r s w e r e in t h e p e t r o le u m r e fin in g , ste e l, a n d w o r k w a s p la c e d o n th e c o m p u t e r h a d b e e n r e r a ilr o a d e le c t r ic a l in d u s tr ie s . t r a n s p o r t a t io n , som e in s u r a n c e , c h e m ic a ls , a ir in d u s tr ie s w ere In c o o r d i n a t io n o f lin e s . 7 0 0 e m p lo y e e s t o a b o u t 1 4 ,0 0 0 , w it h a n a v e r a g e of p o s it io n s . t h a t h a d b e e n in f o r c e f o r w o r k e r s d is p la c e d in th e o ffic e s o f s o m e o f t h e la r g e s t c o r p o r a t io n s in t h e A m e r ic a n new m a c h in e r y , Seven of and th e 20 w ere in a s s ig n e d t o o t h e r p o s it io n s , e it h e r w it h in t h e s a m e in s u r a n c e . u n it o r e ls e w h e r e in t h e o ffic e . (S e e t a b le 1 .) m a jo r i t y r e m a in e d in t h e s a m e p o s it io n . P la n n in g fo r T r a n sitio n A C lo s e t o o n e -s ix t h h a d q u it , r e t ir e d , d ie d , o r h a d t a k e n le a v e o f a b s e n c e . I n s t a llin g a c o m p u t e r i n v o l v e d a s e q u e n c e o f a d m in is t r a t iv e , te c h n ic a l, a n d p e r s o n n e l c h a n g e s t h a t , o n th e a v e r a g e , s p a n n e d 3 y e a r s . N in e p e r s o n s h a d b e e n la id o f f .2 E m p l o y m e n t in t h e a ffe c t e d g r o u p w a s a b o u t 2 5 p e r c e n t le s s a t th e e n d o f t h e y e a r . T h e lo n g A lit t le o v e r 8 0 p e r c e n t o f th e e m p lo y e e s a f p e r io d o f p r e p a r a t io n a n d p la n n in g n e e d e d f o r th e f e c t e d b y t h e c h a n g e w e r e in r o u t in e j o b s i n v o l v in g i n t r o d u c t io n of e le c t r o n ic d a ta p r o c e s s in g w as p a r t ic u la r ly u s e fu l in a v o id i n g e x t e n s iv e d is lo c a T able 1. J ob Status of E mployees of the A ffected U nits 1 Y e ar A fter I ntroduction of E lectronic D ata P rocessing , Selected A ge G roups 1 t i o n o f e m p lo y e e s . M any o ffic e s to o k a d va n ta g e o f th e g r a d u a l u n fo ld in g o f th is m a jo r c h a n g e t o in fo r m e m p lo y e e s t h e ir p o lic ie s a b o u t j o b s e c u r it y . Type of job change A m a jo r i t y o f Num ber th e o ffic e s m a d e s t a t e m e n t s g iv i n g a s s u r a n c e t h a t n o e m p lo y e e w o u l d lo s e h is j o b o n a c c o u n t o f th e com p u ter. No change in position.......... 1,498 883 Position changed_____ ___ Reassigned within same work unit.................. 552 331 Transferred............. To computer unit. -. 52 To other units......... 279 Quits, layoffs, and other sep 427 arations........................... 328 Quits............................ 42 Retirement and deaths. _ 35 Leaves of absence.......... 13 Discharges___________ 9 Layoffs......................... c r e a t e d b y q u it s , d e a th s , r e t ir e m e n t , a n d le a v e s o f a b s e n c e c o u ld b e fille d b y e m p lo y e e s w h o m i g h t b e a ffe c t e d . * The method of determining the extent of displacement, reassignment, and occupational shifting was to record the changes in status that took place among employees in those units over a period of 18 months, beginning 6 months before and ending 1 year after the installation. These periods were selected in order to exclude, as much as possible, the effects of factors other than the immediate installation of the computer. This does not mean that additional groups will not be affected as the use of electronic data processing is extended. Many offices with a largevolume of paperwork indicated that the introduction would be a gradual process continuing over some years. 45 years and over Per Num Per Num Per cent ber cent cent ber 644 100.0 53.3 1,059 724 31.4 49.0 33.5 439 159 24.7 460 264 46 218 21.3 92 67 381 322 3 34 13 9 17.6 14.9 All employees..................... 2 2,808 100.0 H ir in g w a s c u r t a ile d s o t h a t v a c a n c ie s Under 45 years All ages in a d v a n c e a b o u t th e c h a n g e a n d t o m a k e e x p lic it 19.7 11.8 1.9 9.9 15.2 11.7 1.5 1.2 .5 .3 2,164 ioo.o 12.2 2.1 10.1 .1 1.6 .6 6 61 46 6 39 1 68.2 14.3 10.4 .9 9.5 7.1 .9 6.1 (*) .4 1 Data relate to employees in affected units of 18 offices, 6 months prior to introduction. 2 Total excludes 7 employees for whom data were insufficient. 3 Less than 0.05 percent. Note: Because of rounding, sums of individual items may not equal totals. 97 posting, checking, and m aintaining record s; filing; com p u tin g; or tabulating, keypu nch , and related m achine operations. (See table 2 .) T h e rest were m ain ly in adm inistrative, supervisory, and a ccou n tin g w ork. O n ly a little over 4 percent were engaged in correspondence, stenographic, and secretarial job s, i.e., the less routine clerical job s. M o s t o f the em ployees still em ployed in the offices 1 year after the installation, continued to d o the sam e ty p e o f w ork. A b o u t 16 percent o f this group were shifted to a different typ e o f routine w ork, e.g., from com pu tin g to postin g and check ing. A little under 2 percent, a total o f 52 per sons, were transferred from the affected group to electronic data-processing job s. M o s t o f these had been doin g adm inistrative, accounting, or tabulating-m achine w ork ; on ly a few , chiefly fo r equipm ent operation, cam e from routine clerical w ork. C lose to one-third o f the em ployees in the af fected group had been p rom oted to a higher grade. A negligible num ber had been dow ngraded. M o s t o f the upgrading in v olv ed em ployees under age 45 and to som e extent reflected prom otion s w hich w ou ld have taken place regardless o f the a dven t o f the new equipm ent. T h e relatively favorable experience o f these offices reflected com pa n y policies to p rovid e jo b security, the high rate o f lab or turnover during a period o f prosperity, and in a few offices, a T a b l e 2 . P e r c e n t a g e D is t r ib u t io n 1 o f Y e a r E m A greater w orkload to handle inform ation w hich had previou sly been uneconom ical to acquire. Since these were large offices, em ployees cou ld be trans ferred to com parable clerical positions requiring a relatively short period o f on -th e-job retraining. E ffect on Growth o f Office Employment. T h e groups w hose w ork was placed on the com pu ter repre sented, on the average, on ly abou t 5 percent o f tota l office em ploym ent. T h e p rop ortion varied, depending on the nature o f the application and the degree o f m echanization. T h e im m ediate overall effect o f electronic data processing suggests som e retardation in the grow th o f office em ploym ent, particularly routine p arttim e job s, fo r w hich w om en were hired. ' O ver the 4 years from D ecem ber 1953 to D ecem ber 1957, total office em ploym en t at 17 offices fo r w hich data were available increased on the average b y 7 percent. This increase, how ever, was less than the 15-percent rise reported fo r clerical and kindred workers in the N ation as a whole. In 6 o f the 17 offices, the increase was greater than 15 p ercen t; in 7 less, and in 4, there was a decrease prim arily because o f business conditions. Changes in Grade Structure. T h e in troduction o f electronic data processing raised the average grade or skill o f office occupations, b u t on ly to a slight extent. W ith the elim ination o f low -p aid jo b s p l o y e e s C f t e r in o m A f f e c t e d p u t e r I U n it s , O b y c c u p a t io n a l C l a s s if ic a t io n n s t a l l a t io n E m p lo y m e n t 6 m o n t h s p r io r to co m p u te r in s t a lla t io n O c c u p a t i o n a l c la s s i f i c a t i o n O c c u p a t io n a l c la s s if ic a t io n A l l g r o u p s . . ------------------- ---------------------------1. 2. 3. 4. A d m i n i s t r a t i v e ______________________________________ S u p e r v i s o r y __________________________ ________________ A c c o u n t i n g a n d p r o f e s s i o n a l_________________ P o s t in g , c h e c k in g , a n d m a in t a in in g r e c o r d s ________ _______ ____________________________________ 5 . C o m p u t i n g a n d s t a t i s t i c a l _____________________ 6 . C o r r e s p o n d e n c e w o r k ___________________________ 7 . S t e n o g r a p h i c a n d s e c r e t a r i a l _________________ 8 . K e y b o a r d o r k e y p u n c h m a c h in e o p e r a t i o n s ............. ...........................— ...................................... 9 . T a b u la t in g a n d r e la t e d m a c h in e o p e r a t i o n s .................................................................................... S o r t in g , r o u t in g , c la s s if y in g , a n d f ilin g . 10. N um ber P e r cent A ll g ro u p s 2 ,7 7 2 1 0 0 .0 41 1 76 1 67 1 .6 6 .3 6 .7 7 19 4 92 >3 34 2 6 .9 1 7 .7 .1 1 .2 4 47 6 18 86 1 2 1 0 0 .0 1 .6 1 0 0 .0 1 0 0 .0 1 0 0 .0 8 2 .9 3 .4 1 .3 , 3 4 6 6 7 8 9 10 6 .2 6 .0 2 2 .3 1 6 .2 0 .1 1 .3 1 4 .1 1 5 .1 1 .4 8 0 .7 3 .2 4 .9 2 .8 8 1 .6 2 .3 0 .6 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 .4 1 .4 1 .1 2 .2 6 8 .6 7 .1 4 .0 7 3 .4 1 6 .1 1 0 0 .0 .2 .4 4 .6 1 .8 2 2 .3 3 .1 1 0 0 .0 1 0 0 .0 2 .4 1 .3 6 .6 3 4 .1 3 .4 1 .2 2 .9 .2 i E x c l u d e s 4 3 e m p lo y e e s f o r w h o m d a t a w e r e i n s u f f i c i e n t . * In s u f f ic ie n t d a t a to w a r r a n t p r e s e n ta t io n o f p e rc e n ta g e d is t r ib u t io n . N 98 o t e 2 .3 0 .4 0 .4 3 .5 1 .8 1 .7 .4 8 5 .3 2 .9 1 .1 7 2 .9 2 .2 3 .6 9 .4 6 2 .0 8 .2 1 .5 .6 E le c t r o n ic d a ta p ro c e s s in g Sepa ra te d 1 .8 1 5 .0 7 .3 3 .4 8 .3 4 .9 4 .5 5 .7 .4 .4 1 7 .9 1 2 .6 .7 1 6 .1 3 .1 1 7 .6 2 3 .5 8 .8 1 .0 2 3 .5 : B e c a u s e o f r o u n d in g , s u m s o f i n d iv i d u a l it e m s m a y n o t e q u a l 100. that were n ot filled as th ey becam e vacan t during the transition, the higher paid group becam e a larger p rop ortion o f the total in the affected group. T h e classification o f the new electronic data-processing positions at the top o f the office p a y structure also tended to upgrade the pattern. Since these groups at the b o tto m and the top o f the p a y structure constituted b u t a small p rop or tion o f total office em ploym ent, the n et effect on the structure o f an entire office was small. New Jobs. A small num ber o f new positions were created to operate, program , and m anage elec tronic data-processing activities. T h e average num ber o f persons em ployed in these units at the tim e o f the stu dy was 29. C lose to 7 ou t o f 10 persons in electronic data-processing w ork were in program m ing and planning positions; abou t 25 percent were engaged in operating the equipm ent; and 8 percent were in adm inistrative and super visory occupations. W age and salary rates were generally fixed through existing jo b evaluation and personnel classification systems and, where collective bar gaining was in force, w ith union participation. T h e offices generally rated these new positions at som ew hat higher grades than job s in other data processing, placing them at the top o f the office p a y structure. M ore than 80 percent o f all em ployees in new positions were selected from w ithin the offices. (See table 3.) T h ose hired from the outside were prim arily trainees. M ost offices relied on standard tests o f learning ability and num erical aptitude to screen applicants for these positions. A ll offices p rovid ed at least 4 or 5 weeks o f form al classroom instruction for program mers and on -th e-job train ing for operators o f the equipm ent. W om en com prised about 10 percent o f the em ployees in these new positions, com pared w ith over 50 percent in the affected unit. O f the 915 em ployees in these new positions, on ly 52, or close to 6 percent, were em ployees w hose previous w ork had been directly affected. A b ou t 10 percent were age 45 and over, com pared w ith 23 percent in the group affected. F ou r ou t o f five em ployees as signed to these positions were upgraded. T h e typ ica l person selected for program m ing and plan ning— w hich accounted for the largest group o f T a b l e in O E 3. O C c c u p a t io n a l l e c t r o n ic D c c u p a t io n a l C a t a -P l a s s if ic a t io n r o c e s s in g P o f E o s it io n s m , p l o y e e s b y P r io r l a s s if ic a t io n P e r c e n t a g e d i s t r i b u t i o n o f e m p lo y e e s i n e le c t r o n i c d a t a - p r o c e s s in g p o s i t i o n s a f t e r c o m p u t e r in s t a lla t io n s t u d y p r io r to e m p lo y m e n t i n e l e c t r o n i c d a t a p r o c e s s in g T o ta ls A d m i n i s P la n n in g C o n s o le A u x i l i a r y e q u ip o p e ra tr a tiv e and t io n m ent a n d su p e r p ro g ram o p e r a t io n m in g v is o r y A l l g r o u p s : N u m b e r ................. P e r c e n t ................... 9 15 1 0 0 .0 69 7 .5 6 37 6 9 .6 77 8 .4 132 1 4 .4 A l l g r o u p s ........................... 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 A c c o u n t in g a n d p ro fe s s io n a l. A d m in is t r a t iv e a n d s u p e r v i s o r y ................................................ T a b u la t in g a n d k e y b o a r d m a c h i n e o p e r a t i o n ................. P o s tin g , c h e c k in g , m a in t a in in g re c o r d s , a n d filin g . C o m p u t in g a n d s t a t is t ic a l.. C o r r e s p o n d e n c e a n d S e cre 3 5 .4 4 4 .9 4 3 .5 1 6 .9 2 .3 1 3 .3 4 0 .6 1 1 .9 1 4 .3 5 .3 1 3 .1 2 .9 4 .4 3 1 .2 5 0 .0 1 0 .7 5 .4 2 .9 9 .3 6 .0 1 6 .7 2 .6 1 8 .2 6 .8 1 .7 1 .1 2 2 .1 5 .2 1 .3 1 1 .7 2 .3 1 .5 1 3 .6 tarial wnrTr ........... _ _ N o n c l e r i c a l . ....................................... N e w h i r e s ........................................... N o t e 2 .0 1 .2 1 8 .9 1 .4 7 .2 : B e c a u s e o f r o u n d i n g , s u m s o f i n d i v i d u a l i t e m s m a y n o t e q u a l t o t a ls * new positions— was a m an betw een 25 and 34 years o f age, with som e college education, w ho had been engaged in accounting* procedure analysis, or related w ork. C hangeover P roblem s W hile layoffs were averted am ong those whose jo b s were eliminated, reassigning em ployees and staffing the new positions som etim es in v olv ed com plex personnel problem s. F inding suitable posi tions for long-service em ployees— especially super visors— w ith ou t disturbing p rom otion opportu n i ties for other em ployees presented difficulties. P a rtly because o f the newness o f the field, there was som e uncertainty abou t salary levels for the new jo b s and the use and va lid ity o f test fo r select ing staff. In som e unionized offices, the new posi tion o f program m ers was included in the bargaining unit o n ly after prolonged negotiations. Im plications fo r Older Em ployees. O lder em ployees were affected b y change in jo b status to a lesser extent than younger workers. T h e y bene fited from general policies assuring jo b security, the seniority provisions in union agreements, and similar protective provisions. H ow ever, th ey were n ot p rom oted to the new ly created electronic posi tions to the same extent as younger workers* nor 99 were th ey hired as trainees. T heir educational qualifications, em ployers' opinions, and preexisting hiring practices, as well as their ow n lack o f con fidence in their learning capacity, were am ong the factors retarding their advancem ent. A n acute sense o f responsibility and their m atu rity and experience, how ever, were im portant factors in the few cases where th ey were assigned to electronic data-processing positions. W here em ployers have form ed opinions about the inflexibility or lack o f adaptability o f older workers, the introduction o f electronic data p roc essing m a y intensify any preexisting reluctance to hire or p rom ote them . T h e examples o f the suc cessful perform ance o f older em ployees in these new positions in the offices studied reinforce the findings o f research workers on the variability in learning ca p acity at all ages and underscore the im portance o f individual appraisal o f em ployees in this field as in others. — E dgar . . . T h e Bureau o f the Census has constructed four duplicates o f an electronic m achine called F O S D IC (Film O ptical Sensing D e v ice fo r In p u t to C om puters) to be used in transcribing for tabulation the data collected in the 18th D ecennial Census o f the U nited States. This will m ake available five o f these electronic m achines in 1960. These m achines will pierform auto m atically the w ork w hich under form er m ethods w ould require the em p loy m ent o f 2,000 clerical workers. T h e p ilot m odel for the Census B ureau's new F O S D IC equipm ent was developed at the B ureau o f Standards b y scientists on the Standards and Census staffs. . . . This electronic m achine rapidly reads m icrofilm s o f census docum ents and transcribes the data to m agnetic tape for direct input to an electronic com puter. — From FOSDIC to Assist in 1960 Census, U.S. Bureau of the Census, July 1959. 100 W e in b e r g Division of Productivity and Technological Developments The Reactions of Employees to Office Automation E in a r H a r d in * W h a t a r e t h e c h a r a c t e r i s t i c s o f changes in w ork environm ent caused b y the installation o f an electronic com puter? H ow do em ployees feel abou t the com puter and the changes it brings? H ow do em ployees in departm ents that are affected b y autom ation differ from those in un affected departm ents in their experiences w ith changes, regardless o f cause, in w ork environm ent? H ow d o affected and unaffected departm ents differ w ith respect to changes in jo b satisfaction during the installation period and to jo b satisfac tion prevailing after the installation? T h e pres ent stu dy addresses itself to these questions. It is based on data collected in tw o questionnaire surveys conducted in a medium -size insurance com pan y, one before and one after the installation o f an IB M 650 electronic data processing m achine.1 transfer o f m an y activities from the hom e to the branch office and the m ovem ent, a year or tw o before, o f all hom e office activities into a new single building from several inadequate facilities. There were few personnel transfers am ong offices. T h e com pan y was n ot a very profitable one b u t was know n as a good em ployer. A n International Business M achines 650 elec tronic data processing m achine, a standard m odel w ith card input and ou tp u t and w ith ordinary m agnetic drum m em ory, was installed in the hom e office in D ecem ber 1957. A fter 2 weeks' testing o f equipm ent and program s, the com puter was successively given the tasks o f checking prem ium com putations perform ed b y agents, com pu tin g premiums and assembling policy-declaration data for policies w ritten in the hom e office, and com piling statistical and accounting reports. T h e checking o f agents' com putations and the processing o f policies written in the hom e office were fu lly autom ated b y the beginning o f M a y 1958. C onversion o f other tasks was n o t com pleted until the fall o f 1958 or later, b u t neverthe less, com puter utilization, including tim e for m achine testing and repair, rose from 15 percent in January 1958 to 84 percent in A pril 1958.2 ♦ A s s is t a n t P r o f e s s o r , D e p a r t m e n t o f E c o n o m i c s a n d t h e L a b o r a n d I n d u s , t r ia l R e la t io n s C e n t e r , M ic h ig a n S t a t e U n iv e r s it y . T h i s s t u d y is p a r t o f t h e a u t o m a t io n r e s e a r c h p r o je c t o f t h e L a b o r a n d In d u s t r ia l R e la t io n s C e n t e r a t M ic h ig a n S t a t e U n iv e r s it y . T h e a u t h o r is in d e b t e d t o W i l l i a m A . F a u n c e , W i l l i a m H . F o r m , a n d E u g e n e H . J a c o b s o n fo r c o n s t r u c t iv e c o m m e n t s o n e a r lie r d r a f t s o f t h e p a p e r . H e a ls o g r a t e f u l l y a c k n o w l e d g e s t h e g e n e r o u s h e l p w h i c h t h e c o m p a n y a n d i t s e m p lo y e e s g a v e t h e C e n t e r i n c o n d u c t i n g t h e r e s e a r c h p r o je c t . 1 E m p i r i c a l r e s e a r c h a d d r e s s in g i t s e l f a t le a s t i n p a r t t o t h e f i r s t t w o q u e s t io n s h a s b e e n p u b lis h e d b y H a r o l d F . C r a ig , A d m in is t e r in g a C o n v e r s io n to E le c t r o n ic A c c o u n t in g ( B o s to n , H a r v a r d U n iv e r s it y , G r a d u a t e S c h o o l o f B u s i n e s s A d m i n i s t r a t i o n , 1 9 5 5 ); T h e I n t r o d u c t i o n o f a n E l e c t r o n i c C o m p u t e r in a L a r g e In s u ra n c e C o m p a n y ( U .S . D e p a rt m e n t o f L a b o r , B L S S t u d ie s in Scope and M ethodology A u t o m a t i c T e c h n o l o g y N o . 2 , 195 5; a n d M o n t h l y L a b o r R e v i e w , J a n u a r y Th e insurance com pan y consisted o f a hom e office located in a small m idw estem city (where it was the largest em ployer o f clerical personnel), a branch office situated in a m etropolitan area, and claims adjustm ent offices in various cities. F o r several years preceding the com puter instal lation, total com pa n y full-tim e em ploym ent had rem ained at approxim ately 400 persons, and parttime em ploym ent was negligible. N o layoffs had occurred for at least 5 years. H ow ever, em ploy m ent had declined in the hom e office and risen in the branch office, prim arily as a result o f the The 195 6, p p . 1 7 - 1 9 ); A d j u s t m e n t t o a n A u t o m a t i c A i r l i n e R e s e r v a t i o n S y s t e m ( I n M o n t h l y L a b o r R e v i e w , S e p t e m b e r 1958, p p . 1 0 1 4 -1 0 1 6 ); F l o y d C . M a n n , S e p te m b e r 1960 Im p a c t o f E le c t r o n ic A c c o u n t in g E q u ip m e n t on th e W h it e C o lla r W o r k e r in a P u b lic U t i lit y C o m p a n y , in M a n a n d A u t o m a t io n ( N e w H a v e n , C o n n ., Y a le U n iv e r s it y T e c h n o lo g y P r o je c t , 1 9 5 6 ), p p . 3 2 -3 9 ; F l o y d C. M a n n a n d L a w r e n c e K . W i ll ia m s , O r g a n iz a t io n a l I m p a c t o f W h it e C o lla r A u t o m a t i o n , i n P r o c e e d i n g s o f t h e 1 1 th A n n u a l M e e t i n g , I n d u s t r i a l R e l a t i o n s R e se a rch A s s o c ia t io n (M a d is o n , W is ., IR R A P u b lic a t io n 2 2 , 1 9 5 9 ), p p . 5 9 -6 9 ; C . E d w a r d W e b e r , I m p a c t o f E l e c t r o n i c D a t a P r o c e s s i n g o n C l e r i c a l S k i l l s ( in P e r s o n n e l A d m in is t r a t io n , W a s h in g t o n , J a n u a r y - F e b r u a r y 1959, pp. 2 6 - 2 6 ); and C h a n g e in M a n a g e r ia l M anpow er W it h M e c h a n iz a tio n o f D a t a P r o c e s s i n g ( i n J o u r n a l o f B u s i n e s s , C h i c a g o , V o l . 3 2 , 195 9, p p . 1 5 1 1 6 3 ); a n d E u g e n e H . J a c o b so n a n d o th e rs, E m p lo y e e T e c h n o lo g ic a l C h a n g e i n a M e d iu m o f A p p lie d A ttitu d e s T o w a rd S iz e d I n s u r a n c e C o m p a n y ( in J o u r n a l P s y c h o l o g y , W a s h i n g t o n , V o l . 4 3 ,1 9 5 9 , p p . 3 4 9 -3 5 4 ). A stu d y d ir e c t e d t o w a r d t h e t w o la t t e r q u e s tio n s h a s b e e n re p o r t e d b y t h e a u t h o r in C o m p u te r A u t o m a t io n , W o r k E n v ir o n m e n t , and E m p lo y e e S a t is f a c t io n ( in I n d u s t r ia l a n d L a b o r R e la t io n s R e v ie w , I t h a c a , N . Y . , J u l y 1 96 0, p p . 5 5 0 -5 6 7 ). i T h e u t iliz a t io n fig u re s w e re b a s e d o n a r e g u la r o n e -s h ift w o r k m o n t h . 101 Fearing that news about the com puter installa tion w ould have adverse effects u pon em ployee attitudes, the com pan y delayed announcem ent o f the installation until O ctober 1957, and it is un likely that m uch inform ation had spread infor m ally through the com pan y before then. A t that time, top m anagem ent m ade a statem ent abou t the im pending installation and its purposes, and gave assurances that, in accordance w ith long standing com pan y p olicy, it w ould n ot jeopardize any em ployee’s job . N o specific guarantee o f earnings or o f aid in retraining was m ade. E arly in N ovem b er 1957, all hom e office em ployees were called to special inform ation meetings at which technical inform ation was given and questions from em ployees were answered; how ever, no spe cific changeover plans were presented. Personnel whose tasks were to be affected directly b y the com puter were instructed in the new w ork p roce dures during the first week o f N ovem ber. G roup meetings in the branch office were n ot held until A pril 1958, when that office was to be affected. T h e com puter installation had a m uch greater im pact on the procedures and tasks o f som e de partm ents than o f others. H om e office depart m ents affected extensively, and hereafter called “ the com puter area,” consisted o f the I B M k ey punching and accounting departm ents, the p ro gram ing and office-system s departm ents, and the internal auditing departm ent. Personnel in this area were given the tasks o f com puter program ing and operation, for w hich th ey had to learn new T a b l e 1. C h a n g e s in J o b o r W o r k C D o n t e n t o f T I u r in g h r e e D form s, codes, and sorting and tabulating routines, and devise new procedures for correcting errors. In addition, it was necessary for them to punch m an y m ore I B M cards than before. H ow ever, conventional I B M equipm ent also rem ained in use. T h e autom obile underwriting departm ent o f the hom e office, the general underwriting departm ent o f the branch office, and the coding and p o licy typ in g departm ents o f b o th offices were less ex tensively affected b y the com puter installation. Personnel in these departm ents lost m an y tasks to the com puter, b u t for m an y o f the rem aining tasks, th ey learned new form s, codes, and procedures. T h e y were given practically no new tasks during the period covered b y the study. These depart m ents are called “ other affected departm ents” in this article. T h e term “ affected departm ents” is used occasionally to refer to the com puter area and other affected departm ents com bined. “ U naffected departm ents” consisted o f the re m aining hom e and branch office departm ents and accounted for the m a jority o f the w ork force. T h e claims adjustm ent offices, w hich were unaffected b y the installation, were excluded from the study. F rom N ovem b er 1957 to M a y 1958, the super visors o f the com puter area and o f other affected departm ents attem pted to defer som e procedural changes n ot related to the com puter so that th ey could concentrate on the conversion to autom a tion. U ndou btedly, how ever, som e unrelated changes occurred. N o substantial m echanization or reorganization in unaffected departm ents to o k n s t a l l a t io n e p a r t m e n t G P e r io d r o u p s o f C o m p u t e r a s P e r c e i v e d b y E m p l o y e e s 1 [P e r c e n ta g e d is t r ib u t io n ] J o b ch a n g e s a t t rib u t e d to c o m p u te r 8 J o b c h a n g e s a t t rib u t e d to a n y so u rc e * C h a n g e s i n jo b o r w o r k c o n t e n t C o m p u te r a rea O th e r a ffe c te d d e p a rtm e n ts U n a ffe c te d d e p a rtm e n ts A ll d e p a rt m e n t g ro u p s C o m p u te r a re a O th e r a ffe c te d d e p a rtm e n ts U n a ffe cte d d e p a rtm e n ts A l l r e s p o n s e s .......................................................................................................... 100 100 100 1 00 100 100 1 00 1 . P r o m o t i o n ......................................................................................................... 2 . T r a n s f e r .............................................................................................................. R e m a i n e d i n jo b w i t h w o r k c o n t e n t c h a n g e d — 3 . G r e a t l y ....................................................................................................... 4 . N o t i c e a b l y .............................................................................................. 5 . S l i g h t l y - ................................................................................................... 6 . N o t a t a l l ( o r n o i m p a c t ) .......................................................... 7 . U n k n o w n .......................................................................................................... 0 4 0 2 1 1 1 2 0 4 5 5 7 5 52 13 9 22 0 21 22 16 34 5 3 4 10 76 5 12 10 11 60 4 57 13 9 17 0 22 26 26 16 0 6 13 28 39 2 1 F o r d e f in it io n o f g ro u p s o f d e p a r t m e n t s , se e t e x t . I n N o v e m b e r 195 7, b e fo re t h e in s t a lla t i o n o f t h e c o m p u t e r , t h e c o m p u t e r a r e a h a d 23 r e s p o n d e n t s , o t h e r a f f e c t e d d e p a r t m e n t s h a d 6 2 , a n d u n a f f e c t e d d e p a r t m e n t s h a d 161. * R e s p o n s e s t o f o l l o w i n g q u e s t i o n a s k e d i n M a y 1958 s u r v e y : “ D i d t h e c o m p u t e r p l a y a n y p a r t i n t h e c h a n g e i n y o u r jo b s in c e la s t N o v e m b e r ? " The f ig u r e s i n r o w s 1 t h r o u g h 5 s h o w t h e p r o p o r t i o n o f r e s p o n d e n t s w h o s a i d t h e 102 c o m p u t e r w a s th e m a in fa c to r o r a m in o r fa c to r in t h e c h a n g e t h e y re p o r t e d . T h e fig u re s i n r o w 6 r e f e r to th o s e w h o s a id e it h e r t h a t t h e r e h a d b e e n n o c h a n g e s i n c e N o v e m b e r o r t h a t t h e c o m p u t e r h a d h a d n o t h i n g to d o w i t h t h e change. * R e s p o n s e s to f o l l o w i n g q u e s t i o n a s k e d i n M a y 1 958 s u r v e y : “ W h a t h a s h a p p e n e d to y o u r j o b s i n c e l a s t N o v e m b e r ? ” place during the period, and the everyday altera tions in w ork m ethods and tasks were excluded from the study. D a ta on em ployee response to com puter auto m ation were collected in tw o questionnaire surveys con du cted in N ovem ber 1957 and M a y 1958.3 M ore than 90 percent o f eligible em ployees were questioned in each survey.4 T h e 246 em ployees w ho participated in both surveys were grouped into the com puter area, the other affected de partm ents, and the unaffected departm ents on the basis o f their affiliation at the tim e of the first survey.5 T h e analysis consisted in com paring the re sponses o f the three groups o f em ployees to questions concerning— 1. Perceived changes in w ork environm ent (regardless o f cause) and feelings about these changes. 2. Perceived im pact o f the com puter upon w ork environm ent. 3. General attitudes tow ard the com puter installation. 4. Job satisfaction. T h e departm ental differences m entioned in the text were all significant at the 5 percent level or better, as determ ined b y the chi-square and other tests. Im pact o f Computer Installation A lm ost tw o-thirds o f the em ployees stated in the M a y 1958 survey that th ey had been unaffected b y the installation o f the com puter, and very few thought the com puter had brought them prom otions or transfers. (See table 1.) T h e proportion o f persons reporting com puter im pact was highest in the com puter area and 3 T h e q u e s t i o n n a i r e s u r v e y s w e r e c o n d u c t e d b y t h e a u t h o r i n c o o p e r a t io n w it h W illia m A . F a u n c e , G lo r ia C h e e k , J o h n N a n g le , a n d G e o rg e W o n . T h e q u e s t io n n a ir e s e m p lo y e d m a n y o f t h e it e m s u s e d in t h e s t u d y b y J a c o b s o n a n d a s s o c ia t e s . 4 In e lig ib le w ere com pany o f f ic e r s , b u ild in g m a in t e n a n c e e m p lo y e e s , e m p lo y e e s w h o s e w o r k t y p i c a l l y r e q u ir e d t h e m to s p e n d m o r e t h a n h a lf t h e t i m e a w a y f r o m t h e o f f ic e , a n d p a r t - t i m e e m p lo y e e s . A t o t a l o f 283 u s a b l e q u e s t i o n n a i r e s w e r e o b t a in e d i n t h e f i r s t s u r v e y , a n d 2 95 w e r e r e c e i v e d i n th e seco n d . F u r t h e r d e t a ils o f th e s u r v e y p ro c e d u re a n d o f th e q u e s tio n n a ir e s e m p lo y e d a r e r e p o r te d b y t h e a u t h o r a n d G e r a ld A c c u r a c y o f E m p lo y e e R e p o rt s o n C h a n g e s in P a y id e n t i f i e d L . H ersh e y , ( in J o u r n a l o f A p p l ie d P s y c h o l o g y , W a s h i n g t o n , A u g u s t 1 96 0, p p . 2 6 9 -2 7 5 ). 1 O n l y 10 o f t h e r e s p o n d e n t s m o v e d f r o m o n e o f t h e t h r e e g r o u p s t o a n o t h e r d u r in g t h e f o l lo w i n g 6 m o n t h s , m o s t l y f r o m u n a ffe c te d to o th e r a ffe c te d d e p a r t m e n t s o f t h e b r a n c h o ff ic e . 103 lowest in the departm ents classified as unaffected. G reat changes in w ork were m ost frequent in the com puter area and least com m on in the unaf fected departm ents. T h e em ployees were asked in the second survey whether the com puter had affected each o f 14 aspects o f their job s, as listed in table 2. A p proxim ately 20 percent failed to answer the questions or chose the response category “ I have no idea.” These respondents were prim arily from unaffected departm ents. A m on g persons giving definite answers, a m a jority reported no com puter im pact. T h e com puter was m ost com m on ly perceived to have affected variety, am ount, and accuracy o f work. It was m ost seldom thought to have affected pay, prom otion chances, and am ount o f supervision. M o st effects, except for jo b security and prom otion chances, to o k the form o f increases, such as m ore variety and greater am ount o f work. On the average for the *14 jo b aspects, the three groups o f departm ents differed n oticeably in the frequency and direction o f perceived com puter im pact. In the com puter area, 58 percent o f those giving definite responses said the com puter had an effect, and 96 percent o f the effects th ey reported were increases. This com pared with 36 and 71 percent, respectively, in other affected departm ents and with 15 and 90 percent, respectively, in the unaffected depart ments. T h e com puter area and other affected depart ments did n ot differ from each other in the frequency o f reported im pact on jo b security, prom otion chances, and pay, and on accuracy dem anded b y the jo b , w ork variety, and w orkload. H ow ever, the com puter area reported m ore fre quent im pact u pon evaluation o f im portance o f jo b ; am ount o f supervision; skill, planning, and judgm ent required; and w ork interest. Further more, it reported m ore increases than decreases for each o f the 14 aspects, but som e differences were slight. In the other affected departm ents, the requirements for accuracy, skill, responsibility, and judgm ent were raised significantly m ore often than lowered, while the reverse was true for p ro m otion chances. A fter the installation, one-third o f the em ployees thought it very likely or quite likely that T a b l e 2. C h a n g e s in 14 J o b A s p e c t s D C u r in g T h r e e o m D p u t e r e p a r t m I n s t a l l a t io n e n t G P e r io d a s P e r c e i v e d b y E m p l o y e e s o p r o u p s [P e rc e n ta g e d is t r ib u t io n ] C h a n g e s a ttrib u te d to c o m p u te r * J o b asp ect T o tal In c r e a s e d 74 37 in C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 100 1 00 re - C o m p u t e r a r e a ...... .............. ....... O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 1 00 100 3 . T h e d eg ree o f a c c u r a c y d em a n d e d b y m y jo b . C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 1 00 100 4. M y c o n tro l o v e r th e of m y w o rk . p ace C o m p u t e r a r e a . . ........................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ___ 100 100 100 5 . T h e im p o r t a n c e o f m y jo b fo r t h e c o m p a n y . C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ___ 100 100 100 6 . T h e a m o u n t o f s u p e r v is io n I g e t o n m y jo b . C o m p u t e r a r e a ........ .............. — O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ___ 100 100 100 7. T h e a m o u n t of s k ill need ed o n m y jo b . C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ___ 100 100 100 8 . T h e a m o u n t o f r e s p o n s i b i l i t y d e m a n d e d b y m y jo b . C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ___ 100 100 100 9 . T h e a m o u n t o f p la n n in g I h a v e to d o o n m y jo b . C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a ffe c te d d e p a r t m e n t s .._ 100 100 100 10. T h e a m o u n t o f ju d g m e n t I h a v e to u s e o n m y jo b . C o m p u t e r a r e a __________________ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 100 100 11 11. T h e d e g re e to w h ic h w o r k is in t e r e s t in g . m y C o m p u t e r a r e a . . ........................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ___ 100 100 65 24 100 14 s e c u rity C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 100 31 11 100 13. M y c h a n c e s fo r p r o m o t io n to a b e t t e r jo b . C o m p u t e r a r e a . . ........................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 100 100 14. T h e a m o u n t o f p a y I o n m y jo b . C o m p u t e r a r e a ............................ O th e r a ffe c te d d e p a rt m e n ts. U n a f f e c t e d d e p a r t m e n t s ____ 100 100 100 6 1 . T h e a m o u n t o f v a r ie t y m y w o rk . 2. T h e am o u n t of w o rk q u ir e d o n m y jo b . 12. T h e a m o u n t o f I fe e l o n m y jo b . C h a n g e s a t t rib u t e d to a n y so u rce * D e p a rtm e n t g ro u p 1 get D ecrea sed N o t a v a il a b le T o tal In c r e a s e d 1 00 1 00 65 42 Sam e 35 39 D ecre a se d 0 19 N o t a v a il a b le 0 0 26 37 0 20 0 6 17 55 2 26 1 00 46 50 3 1 74 39 22 34 4 24 0 3 1 00 100 70 42 30 45 0 11 0 2 19 53 2 26 100 52 42 4 2 65 56 35 37 0 5 0 2 100 1 00 57 35 43 63 0 2 0 0 12 63 0 25 1 00 27 72 0 1 48 21 43 64 9 10 0 5 1 00 1 00 35 30 56 60 9 8 0 2 9 63 2 26 100 25 67 6 2 57 21 39 65 0 8 4 6 100 100 52 27 48 65 0 8 0 0 5 68 0 27 100 25 73 1 1 48 5 48 87 4 6 0 2 100 100 26 11 70 78 4 11 0 0 4 68 2 26 100 12 76 11 1 74 34 26 61 0 3 0 2 1 00 100 52 ^7 48 58 0 5 0 0 9 66 0 25 1 00 30 67 1 2 70 39 30 55 0 3 0 3 100 100 61 40 39 52 0 6 0 2 12 65 0 23 100 41 57 0 2 61 11 39 78 0 6 0 5 100 1 00 39 31 61 63 0 6 0 0 11 62 0 27 100 34 62 2 2 70 24 30 68 0 3 0 5 100 100 56 36 44 58 0 6 0 0 65 0 24 100 40 57 1 2 31 60 4 13 0 3 100 100 61 42 35 43 4 15 0 0 62 1 23 100 36 59 4 1 65 66 4 20 0 3 100 100 31 26 65 55 4 17 0 2 6 67 3 24 100 21 72 4 3 22 5 74 68 4 17 0 10 100 100 22 8 78 68 0 22 0 2 3 66 2 29 100 15 72 9 4 30 10 70 77 0 2 0 11 100 100 56 39 40 61 0 0 4 0 68 1 25 100 46 53 0 1 1 F o r d e f in it io n o f g r o u p s o f d e p a r t m e n t s , se e t e x t . F o r s iz e o f d e p a r t m e n t g r o u p s , s e e f o o t n o t e 1, t a b l e 1. * E m p l o y e e s w e r e a s k e d i n t h e M a y 1958 s u r v e y to c h e c k o n e o f t h e f o l lo w i n g : “ F o r t h i s a s p e c t o f m y j o b , t h e c o m p u t e r c a u s e d (1 ) a g r e a t i n c r e a s e , (2 ) s o m e i n c r e a s e , (3 ) n o c h a n g e , (4 ) s o m e d e c r e a s e , (5 ) a g r e a t d e c r e a s e , (6 ) I h a v e n o i d e a w h a t t h e c o m p u t e r m a y h a v e d o n e .” T h e t a b le c o lu m n h e a d s “ I n c r e a s e d ," “ N o n e ,” “ D e c r e a s e d ," a n d “ N o t a v a ila b le ” c o r r e s p o n d to r e s p o n s e s 1 - 2 ,3 , 4 -5 , a n d 6 p lu s n o r e s p o n s e , r e s p e c t iv e ly . None * E m p l o y e e s w e r e a s k e d i n t h e M a y 1958 s u r v e y t o c h e c k o n e o f t h e f o l lo w in g : “ H o w h a s t h i s a s p e c t o f y o u r Jo b c h a n g e d i n t h e p a s t 6 m o n t h s ? 1. M u c h m o re n o w , 2. M o re n o w , 3. N o ch a n g e , 4. L e s s n o w . a n d 5. M u c h le s s n o w ." T h e t a b le c o lu m n h e a d s “ I n c r e a s e d ,” “ S a m e ," “ D e c r e a s e d ,” a n d “ N o t a v a ila b le " c o r r e s p o n d to r e s p o n s e s 1 - 2 , 3 ,4 - 5 , a n d n o r e s p o n s e , r e s p e c t iv e ly . the computer would influence their jobs in the following year or two. People in the computer area were most convinced of this (83 percent), followed by those in other affected departments (61 percent), while a minority of employees in sofar unaffected departments thought they would be affected (21 percent). Fifty-eight percent of the employees who saw the computer as a major or minor factor in the change of job or of work content over the 6-month period said they liked the change, while 21 per cent expressed indifference, and an equal propor tion said they disliked the change. Among those who thought computer impact on their jobs in the subsequent year or two was very likely or quite likely, 10 percent disliked the prospect, while 29 percent did not care, and 58 percent liked it. Both past and prospective computer impacts were liked more strongly in the computer area and unaffected departments than in the other affected departments. N o questions were asked about em ployee feel ings concerning the im pact o f the com puter upon specific jo b aspects. Since responses to other questions indicated that the em ployees usually preferred increases in a jo b aspect to decreases, the com puter im pact on specific jo b aspects was apparently m ore often liked than disliked. Sixty-one percent of the employees in both the computer area and other affected departments felt that the changeover to the new computer had been only slightly disrupting or not disrupting at all, while 20 percent saw it as quite disrupting, and 9 percent felt it had been very disrupting. More than one-third of employees in unaffected departments had no opinion. According to answers given before the installa tion of the computer, the vast majority of the employees either liked the fact the company had decided to install a computer or were indifferent. Dislike of the decision was reported by 5 percent, indifference by 27 percent, and positive approval by 63 percent. Disapproval was absent from the computer area and most common, 13 percent, in the other affected departments. Table 3 shows that the majority of the employees continued to like fhe computer installation after they acquired 105 some experience with it and its effects. Forty-one percent of the employees in affected departments changed their feelings about the computer from November to May, with increases and decreases in liking being equally numerous. In the un affected departments, 54 percent changed their minds, primarily from positive feelings to indif ference. Answers to other questions also failed to show negative attitudes toward the computer after the installation. The personnel of unaffected depart ments often did not know whether the computer had been a good thing or a bad thing for employees. However, regardless of department affiliation, those who had an opinion usually thought the computer had been a good thing. A majority of those with an opinion favored wider use of the computer; this feeling was particularly pronounced in the computer area. Impact of All Job Changes In the May 1958 survey, about two-thirds of all participating employees reported that job changes—most commonly, changes in work con tent without promotion or transfer—had taken place since the computer installation for a variety of reasons. Changes were reported more often by employees in the computer area and in other affected departments than by employees in un affected departments, and great and noticeable changes in work content were more predominant among the first two groups, particularly in the computer area. Sixty-one percent liked the changes experienced during the 6-month period, 18 percent disliked them, and most of the others professed indifference. Likes and dislikes of the changes were distributed very similarly in the three departments. In the second survey, the employees were also asked what changes, regardless of source, they experienced in each of the 14 job aspects over the 6 months. In all departments combined, the net change in job aspects was most frequent for variety and amount of work and was least frequent for amount of supervision and promotion chances. Increases significantly outnumbered decreases for T a b l e 3. G e n e r a l A T t t it u d e s o w a r d t h e C o m p u te r G A I f t e r r o u ps n s t a l l a t io n , b y E m p l o ye e s in T h r e e D e p a r t m e n t 1 [Percentage distribution] Computer good or bad for employees * General feeling toward computer Installation * Response Com puter area Other affected depart ments Unaf fected depart ments 100 100 Response Desirable extent of computer use * Com puter area Other affected depart ments Unaf fected depart ments 100 100 100 Response Other affected depart ments 100 100 Unaf fected depart ments 100 All responses........... I like It very much... 48 18 11 A very good thing_ 44 31 15 Much more widely than now. 30 13 I like it..................... 39 45 28 A good thing........... 44 40 36 More widely than now. 44 34 20 It makes no difference tome. 9 27 50 Neither a good thing, nor a bad thing. 12 13 21 20 I dislike it............ . 0 8 7 A bad thing............ 0 0 4 Less widely than now. 0 0 1 I dislike it very much. 0 2 0 A very bad thing___ 0 0 1 Much less wide ly than now. 4 0 1 I have never given it a thought. 0 0 2 I have no idea......... 0 13 30 I don't know__ 13 30 42 No response.............. 4 0 2 No response............ 0 3 4 No response___ 0 2 All responses............. 10 All responses__ Com puter area About the same as now. 9 100 9 7 1 For definition of groups of departments, see text. For size of department groups, see footnote 1, table 1. * The question, asked in the May 1958 survey, was as follows: “ What is your general feeling about the fact that the company has installed a com puter?” *The question, asked in the May 1958 survey, was as follows: “ Consider ing everything, do you think the computer has been a good thing or a bad thing for the employees in [the company]?” * The question, asked in the May 1958 survey, was as follows: “ In your opinion, would it be a good idea to use the computer more widely or less widely in this company than is now the case?” all aspects except am ount o f supervision and p ro m otion chances. F or m ost aspects, how ever, a m a jority reported there was no change during the period. E m ployees in unaffected departm ents tended to report less net change in jo b aspects than did em ployees in the com puter area or the other affected departm ents. H ow ever, the differences were v ery small for m an y o f the individual jo b aspects. T h e com puter area and other affected departm ents com bined reported significantly m ore change in accu racy requirements, im portance of jo b , w ork interest, and jo b security than did unaffected departm ents. T h e three groups also differed som ewhat in the direction o f the change in jo b that was reported. In general, the num ber o f increases relative to that o f decreases tended to be higher in the com puter area and in unaffected departm ents than in the oth er affected departm ents. This relation ship was statistically significant for variety and am ount o f w ork, im portance o f the jo b to the com pany, responsibility required, w ork interest, jo b security, and p rom otion chances. T h e com puter area did n ot differ from unaffected depart m ents in the direction o f change on a ny o f the jo b aspects. E ven in the other affected departm ents, increases exceeded decreases for most aspects, but decreases in promotion chances were reported significantly more often than were increases. Most net changes in job aspects were in a direction employees liked. Among those who reported a change in any job aspect after the com puter installation, from 61 to 93 percent said they liked the change or liked it very much, up to 10 percent reported indifference, and from 2 to 31 percent disliked it or disliked it very much. Indifference was expressed most often toward changes in amounts of work and supervision and least often toward changes in work interest and job security. Likes were most numerous relative to dislikes in the case of accuracy, skill, and responsibility and fewest in the case of pro motion chances, amount of supervision, and job security. Considering the 14 job aspects together, re sponses stating that changes were liked outnum bered the expressions of dislikes by 10 to 1 in the computer area and in unaffected departments, but only by 3 to 1 in the other affected departments. In the last group, the changes in importance of the job, amount of supervision received, amount of judgment required, job security, and chances for promotion were disliked as often as they were 10 6 liked. However, no aspect was significantly more disliked than liked even in these departments. In the computer area, the changes in 11 of the aspects were liked more often than disliked, but changes in pay, which were all increases, were disliked as often as they were liked. Employees in the computer area perceived few changes in job security and chances for promotion, and the num ber of likes and dislikes for these two changes did not differ significantly. As suggested by the responses to pay changes in the computer area, some changes were perhaps reported as disliked, not because they went in the undesired direction or disrupted the status quo, but because they did not go far enough in the desired direction. Similarly, some expressions of approval possibly meant that although the change was really undesirable, it was too small to disturb materially a pleasant status quo. Department Differences in Job Satisfaction The same 24 questions concerning job satisfac tion were asked in each survey. Since the questionnaires were identified, it was possible to determine whether each respondent’s reported satisfaction in each of these 24 respects had risen, remained the same, or fallen from the first to the second survey. As an average for all depart ments and items, 33 percent of the 246 respondents showed increased satisfaction, 39 percent showed no change, 24 percent showed decreased satis faction, and 4 percent did not answer.7 Because of response unreliability, however, these figures somewhat overstate the frequency of genuine change. Absence of change was equally common for all 24 items. Increases in job satisfaction were significantly more numerous than decreases for 15 items. These included all of the items listed in table 2 (excepting promotion opportunities), and items described as “the relationship between you and your supervisor” and “the information you receive concerning changes in the company and in your job.” In addition to promotion opportunities, other exceptions were the way changes were handled, kind of work done, the* com pany, amount of information, accuracy of informa tion, understandability of information, promptness o f inform ation, and the jo b as a whole. B u t for no item were decreases in satisfaction significantly m ore com m on than increases. The preponderance of increases over decreases in satisfaction was probably not related to the com puter, and there were no other large changes in company behavior that would easily explain the net increases in satisfaction. More plausible explanations lie in the continuation of the 1957-58 recession (affecting heavily the automobile in dustry of the region and making the insurance company employees happier about tjieir jobs), and in a variety of special factors. The three groups of departments showed few pronounced differences in the frequency and direction of change in job satisfaction. In fact, significant differences were found for only 3 of the 24 items. Satisfaction with pay changed equally often in the three groups, but the computer area showed fewer increases relative to decreases than did the other two groups. Satisfaction with the promptness of information changed less often in the other affected departments, but increases were equally common relative to decreases in all groups. Increases were more predominant among changes in overall job satisfaction in the unaffected departments. Nevertheless, there were signs of a pattern of differences. For the first 12 items on table 2, the average frequency of change was lower in un affected departments than in the other two groups, while the ratio of increases to decreases was smallest in the other affected departments. For the remaining 11 of the 23 specific job aspect items, the average frequency of change did not differ among departments, but the proportion of increases in satisfaction was lower in the computer area than in the other two groups. The first set of items covered primarily intrinsic job aspects, while the second set covered pay, job tenure, relations to management, and information. According to the second survey in May 1958, employees as a group showed little satisfaction with chances for promotion, amount of pay re ceived, the way of handling changes in the com pany, and the promptness of information. They were notably satisfied, however, with accuracy and skill requirements and responsibility. Th e three departm ent groups differed little in Because of its bulk, the table showing the changes in job satisfaction and satisfaction with individual jo b aspects after the the May 1958level of satisfaction by aspect and department was omitted from com puter installation. C om plete satisfaction the article. Interested readers may obtain copies of the table from the author. 7 107 with amount of supervision and skill was most pronounced in the computer area. The largest proportion of respondents “somewhat satisfied” or “not satisfied” with variety and with kind of work done was found in other affected depart ments. For all other job satisfaction items taken individually, including overall satisfaction, there were no significant departmental differences, whether the comparisons pertained to the propor tion of completely satisfied respondents or to the proportion of respondents that were somewhat or not satisfied. On the average for the 24 items, however, com plete satisfaction was most commonly reported in the computer area, while the other affected departments showed the largest proportionof some what or not satisfied respondents. The depart ment differences in average proportions of com pletely satisfied and somewhat or not satisfied respondents were about the same for the first 12 items as the latter group; the only significant variation was that the computer area was less often dissatisfied and the other affected depart ments were more often dissatisfied with the first set of items than with the second. Conclusions The results of the study indicate that the in stallation of the computer by the insurance com pany affected the work environment of a number of employees in several respects, that most of its effects were those that employees desired, and that the computer installation was liked more often than disliked. However, the departments affected by the computer and those not affected differed little in the frequency and direction of net change in most job aspects although there were significant department differences for some aspects of the job. Employees in the computer area (which gained work tasks as a result of the 10 8 installation) and em ployees o f the unaffected* departm ents liked the net changes m ore than did em ployees o f the other affected departm ents (which had lost w ork tasks because o f the com puter and h ad been required to adjust to p artly new m ethods o f w ork). T h e em ployees o f these other affected departm ents show ed less gain in satis faction w ith intrinsic jo b aspects than did the personnel o f the other tw o groups. C om puter area personnel tended to becom e com paratively less satisfied than other em ployees with jo b tenure, p ay, relations to supervisor and com pan y, and inform ation practices. M o s t departm ent dif ferences in jo b satisfaction change were slight. Except for the installation of the computer and the resulting adaptation of work methods, there were no large technological changes in the company during the period studied. The fact that affected departments and unaffected depart ments were found to differ little in perceived job changes, in feelings about these changes, and in changes in job satisfaction indicate that the com puter had only moderate effects upon work envir onment and job satisfaction. This conclusion, which agrees with the author’s conclusion from a previous study of computer automation,8 suggests that the installation of an IBM 650 computer is not a radical or extensive enough operation to cause a substanial reversal or acceleration of exist ing trends in work environment and job satis faction. The computer area’s slightly declining satisfaction with information practices and with the company’s way of handling changes suggests, however, that the process of installing a computer and of adapting work methods to it may cause noticeable, though presumably temporary, dis satisfaction unless management handles the con version with great skill. » See Computer Automation, Work Environment, and Employee Satis faction (in Industrial and Labor Relations Review, Ithaca, N.Y., July 1960, pp. 669-667). O f f i c e A u t o m a t io n in t h e F e d e r a l G o v e r n m e n t the Government has a large volume of routine recordkeeping, Federal administrators and technicians have been greatly interested in the economies of personnel, time, and money possible with electronic data processing. From the earliest stages of development of this new technology, Federal agencies have been among the leaders in adopting electronic computers for business as well as scientific purposes. These innovations repre sent the latest step in a continuing search for more efficient equipment going back as early as 1889, when Herman Hollerith of the Census Bureau pioneered the use of mechanical data processing equipment. The impact of office automation on Government employees has also been receiving special atten tion. The Subcommittee on Census and Govern ment Statistics of the House of Representatives Committee on Post Office and Civil Service con ducted hearings in 1959 and 1960 to determine the extent of office automation in the Federal Govern ment and to explore the implications of these technological changes for Federal clerical workers. The subcommittee, under the chairmanship of Representative John Lesinski of Michigan, heard witnesses from the Bureau of the Budget, the General Accounting Office, the Veterans Adminis tration, the Treasury and Post Office Depart ments, and several Government employee unions. In addition to the testimony by the witnesses, many exhibits were also submitted to the sub committee. This article summarizes material presented in these hearings concerning the impact of office automation on employees (primarily clerical). It presents information on such topics as computer applications and savings, problems of displace ment and reassignment, personnel planning for technological change, selecting and training per B ecau se S ep te m b e r 1960 sonnel fo r electronic data processing (E D P ) posi tions, and attitudes o f em ployee organizations tow ard autom ation .1 Extent and Examples of Use Since the Bureau of the Census first introduced a large-scale electronic computer for business pur poses in 1951, the application of EDP systems has grown rapidly. According to a recent Bureau of the Budget survey, there were 414 computers of all sizes located in Government agencies in fiscal year 1959.2 An earlier report, included in the hearings, noted that 8 out of 10 of all mediumand large-scale computers were located in military establishments, and that 2 out of 3 were pro gramed for business applications, the remainder being used to process scientific data.3 The rapid growth of electronic data processing in Govern ment agencies will probably continue. By 1961, agencies informed the Budget Bureau that they expect to have 646 computers in operation. Among examples of computer uses described in the hearings are two business applications in the Treasury Department that involve hundreds of millions of transactions annually: the payment and reconciliation of Treasury checks and the auditing and accounting of U.S. savings bonds. i The article is based on the following two volumes: Use of Electronic Data-Processing Equipment, Hearings Before the Subcommittee on Census and Government Statistics of the Committee on Post Office and Civil Service (86th Cong., 1st scss.), Washington, 1959; and Office Automation and Em ployee Job Security, Hearings Before the Subcommittee on Census and Government Statistics of the Committee on Post Office and Civil Service (86th Cong., 2d sess.), Washington, 1960. aSee Inventory and Cost Data Concerning the Utilization of Automatic Data Processing (ADP) Equipment in the Federal Government for Fiscal Years 1959, 1960 and 1961, Executive Office of the President, Bureau of the Budget, May 1960. This report, to be prepared annually, was not included in the hearings. » This report on manpower problems related to adoption and use of EDP systems was prepared by a private research organization for the Bureau of the Budget’s Interagency Committee on Automatic Data Processing. The function of this committee is to coordinate the activities of various users of EDP equipment and to act as a clearinghouse for disseminating information on developments in electronic data processing. 109 In the Veterans Administration, a large-scale electronic data processing system will be used to establish and maintain insurance records for over 6 million policyholders. Officials claim that this operation will be “the most extensive computer application undertaken by any major life insur ance operation/ 1 This program will eventually draw the premium, loan, dividend, and billing records into one major file. The system will then be used to perform high-speed posting, billing, and accounting operations, and will store a complete, up-to-date record on a magnetic tape, which will constitute the master record file. 120 percent). Unit labor costs declined 44 percent, while equipment rental per unit of output rose 85 percent; total unit costs declined 32 percent. Indirect operating economies should greatly increase with the improvement of management control techniques which would result from the centralization and consolidation of data for EDP operations and from the preparation of more meaningful and timely reports. For example, a GAO report (included in the hearings) stated that numerous electronic systems are currently applied in Defense Department supply operations in which the Government has over $50 billion in inventories. Even small percentage savings achieved through a reduction in inventory levels could yield substantial annual savings. The report states: “The unique ability of electronic systems to rapidly combine and analyze data regarding resources and needs in integrated systems in these programs holds promise of achieving these savings.” Some Economic Effects A striking, though not necessarily typical, case of substantial direct savings achieved through the use of electronic data processing systems is the Treasury’s check payment and reconciliation oper ation. Transferring this function to computers centralized in the Treasury Department the responsibility for an operation that had previously been performed jointly by the Treasury Depart ment, the General Accounting Office, and certain Federal Reserve banks. Table 1 shows the amount of direct savings. Although the workload increased 14 percent, employment declined 48 percent—with the result that output per employee more than doubled (up Displacement and Reassignment In the hearings, various Treasury officials described the im pact on em ployees that resulted from the use o f com puters to process check paym ent and reconciliation and to perform savings b onds auditing and accounting operations.4 +120.2 -54.6 -32.0 56.0 -44.0 185.3 +85.3 78.8 -21.2 The changeover relating to check payment and reconciliation affected employees in three agencies: the Office of the Treasurer, the General Account ing Office, and the Federal Reserve System. The electronic system went into operation in June 1957 after a 17-month phased conversion from a me chanical system. Table 2 shows the changes effected from June 1956 to June 1959 (data were not presented for the Federal Reserve System). Only 174, or 23 percent, of the 755 persons affected were retained in the same unit for con tinuing operations. Over one-half were trans ferred, most going to other activities within their organization; only 31 employees, 4 percent of the total, went into the new unit. Through special placement efforts, about 11 percent went to other agencies. Nearly 14 percent resigned or retired. Two were laid off. i Includes a 10-percent pay increase granted classified workers in 1958. * Includes costs for shipping and communications, forms and supplies, and indirect costs. S o u r c e : Derived from data presented in Offico Automation and Employee Job Security, op. cit., pp. 76-77. <Data on characteristics (age, sex, education, etc.) of affected employees and those selected for electronic data processing, extent of their upgrading or downgrading, and their subsequent work assignments were not reported in these hearings. T a b le C osts 1. C of o m p a r is o n s G A fter P r o c e s s in g o v e r n m e n t I t h e S of C P r o d u c t iv it y h e c k n t r o d u c t io n of S y st e m s a n E , a n d B U e fo r e l e c t r o n ic n it a n d D a ta yste m Item Before EDP After EDP Percent (fiscal year (fiscal year change 1956) 1959) Workload............................... checks.. 345,000,000 393,000,000 1,552 803 Number of operating employees........... Total cost..........................................Labor cost (including retirement and other fringe costs)................. Equipment rentals........................ Other costs *.................................. $7,188,000 $5,569,000 ,101,000 579,000 508,000 1 3,891,000 6 1 +13.9 —48.3 -22.5 -36.2 ,222,000 +111.1 456,000 -10.2 Indexes (1956=100) Output per employee........................... Employees per unit of output.............. Cost per unit of output........................ Labor cost per unit........................ Equipment rental per unit........... Other costs per unit....................... 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 2 2 0 .2 45.4 6 8 .0 n o T a b le 2. R U n it s G e n e r a l in e d u c t io n s t h e A O in f f ic e c c o u n t in g of O E m p lo ym e n t t h e f f ic e , Ju T A in r e a su r e r n e 1956 Personnel actions to J ffected a n d t h e u n e 1959 Number Percent Total personnel as of June 1956.................................. 755 Retained for continuing operations............................ Temporarily retained 1.............................................. Transferred__________________________________ To new EDP system in the Office of the Treasurer. To other activities within the Office of the Treas urer or the General Accounting Office............... To other Treasury bureaus.................................. To other Government agencies............................ Resigned, retired...................................................... Deceased________ . ___________________________ Laid off____________________________________ 174 70 399 31 23.0 9.3 52.8 4.1 244 44 80 104 32.3 5.8 6 2 1 0 0 .0 1 0 .6 13.8 .8 .3 *In order to complete residual operations in GAO under old system. Of these 70 employees, 59 were subsequently assigned other duties within the GAO, 2 were transferred to other agencies, 4 resigned or retired, and 5 were laid off. S o u r c e : Office Automation and Employee Job Security, op.cit., p. 75. Automation of the auditing and accounting of savings bonds in the Treasury Department had a more unfavorable outcome for employees. De spite serious efforts, it was difficult in this case to find other jobs for these workers because a large number were clerical employees whose skills were not in demand and who did not want to relocate in other cities. The introduction of the computer affected 889 people in the Bureau of Public Debt and caused the closing of audit branches in Chicago and New York and the curtailment of operations in the Chicago departmental office. Electronic data processing of punchcard savings bonds was started at a new office in Parkersburg, W. Va. (at that time classified a labor surplus area). Other bond processing operations were transferred to the Cincinnati branch. Personnel changes were extensive. (See table 3.) Of 889 employees, over one-third, mainly in lower clerical grades, were laid off. Sixteen per cent resigned, giving such reasons as ill health, home responsibilities, and the desire for further education. Three percent were transferred to other Public Debt offices; 35 percent went to other Government agencies. Nine percent of the total personnel, all from the Chicago depart mental office, obtained jobs with private industry. Bureau officials reported that few of those in Chicago and New York whose jobs were eliminated were willing to move to Parkersburg when offered jobs there. The 458 employees required in the Parkersburg installation were recruited locally. And Bureau officials trying to locate other jobs for those displaced found that there was little demand for people doing such routine clerical work as alphabetical filing and keypunch card work. ill Planning for the Change Federal officials made advance efforts to cushion the impact of office automation on employees. It was reported that agencies adopted such policies as sharing information with employees concerning technological change, using attrition to minimize layoffs, transferring employees to other positions, and retraining employees for reassignment to new jobs. The Treasury Department adopted a policy of informing employees of changes well in advance. In the Office of the Treasurer and in the Bureau of Accounts (affected by another installation), em ployees Were informed nearly a year before sched uled conversion dates. Ivy Baker Priest, the Treasurer of the United States, met with em ployees of the Office of the Treasurer to assure them that everything possible would be done to alleviate hardships that might arise. In the Bureau of Accounts, a memorandum was sent to regional offices setting forth the probable effects impending operational changes would have on employee job security. This memorandum was supplemented by visits of agency officials to each of the six re gional offices scheduled to be closed. During these field visits, the officials discussed personal em ployment problems with the individuals who would be affected by the changeover. In the Veterans Administration, providing em ployees with advance and periodic information concerning technological change is an integral part T a b l e Y P 3. ork u b l ic R a n d D e d u c t io n s C e b t h ic a g o , M a r ch in O E m p l o ym e n t f f ic e s 19, 1957, of to a t t h e t h e B J 30, u n e Personnel actions N u r e a u Number e w of 1958 1 Percent Total affected_______________ ____ ___________ 889 Transferred_________________________________ To other Public Debt offices............................... To other Government agencies............................ Obtained jobs with private industry (Chicago office).. Resigned because of ill health, home responsibilities, desire to further education, etc............................... Retired.......... .............................................. ....... Laid off................................................................... 336 25 311 78 37.8 143 14 318 16.1 1 0 0 .0 2 .8 35.0 8 .8 1 .6 35.8 1 No layoffs have been necessary since June 30,1958, and none are foreseen. Note: Because of rounding, the sum of individual percentages does not equal 100. S o u r c e : Office Automation and Employee Job Security, op. cit., p. 83. of basic personnel policies developed for EDP situations. Commenting at the hearings on per sonnel procedures already initiated, Edward R. Silberman, Assistant Administrator for Personnel, stated: “We wanted our people to know what was going on and how they stood at any given time . . . [and] we wanted to provide a ready access to management.” These personnel policies were spelled out in a letter from Sumner G. Whittier, VA Administra tor, to his department and office heads well ahead of the initial computer installation. Subsequent information was provided in periodic newsletters, bulletins, etc., and during conferences held by agency officials with employee groups. Informa tion supplied included a description of electronic data processing, types of jobs and number of em ployees likely to be affected, and reassurance that the agency would do everything possible to mini mize displacement. A basic orientation course on EDP, lasting from 3 to 40 hours, was given to 17,500 employees. Mr. Whittier instructed department heads to inform managers of the occupational categories and number of employees to be affected at each VA station “as soon as possible, but not later than 6 months prior to the conversion date for the partic ular station” ; and it was also decided that em ployees adversely affected would be given a mini mum of 90 days’ advance notice. Some agencies formulated in advance explicit policies for EDP installations which provide for maximum use of attrition where necessary. A Department of the Army regulation (AR-1- 250) specifically states: “Resultant personnel adjust ments will be minimized wherever possible through attrition or retraining and reassignment in prefer ence to reduction-in-force procedures.” A joint Treasury Department-General Accounting Office report (included in the hearings) noted that the long time period necessary for planning the com puter installation provides maximum opportunity to utilize attrition. In the future, agencies plan to rely heavily on attrition to provide jobs for employees displaced because of automation. The Internal Revenue Service will soon begin to install a centralized data processing system, and Commissioner Dana Latham stated in a letter to IRS employees on August 12, 1959, that “we will make every effort to effect changes gradually so that most, 1 12 if not all, of the necessary personnel cuts can be made by attrition.” An integral phase of advance planning was the development of administrative procedures for transferring surplus employees to other jobs. The Treasury Department’s Bureau of Accounts (Division of Disbursements), for example, insti tuted a “job freeze” and instructed that all vacancies be reported to the central personnel office to determine whether employees displaced because of the closing of certain field offices could qualify for the openings. Bureau officials also discussed with other Federal agencies and local civil service offices the placement of these surplus employees. The VA estimated at the hearings that automa tion will create 1,259 surplus positions in VA offices throughout the country during fiscal years 1960- 62. Commenting on the importance of advance planning, Mr. Silberman stated: “The need for reassignment actions will be anticipated in sufficient time to take full advantage for out placement of employees.” In some instances surplus employees in regional offices will be offered transfers at Government expense to VA hospitals in need of their services. Providing displaced employees with opportu nities to develop skills needed for new jobs was recognized as an important prerequisite to making an orderly change. Some agencies made efforts to provide training programs in advance. The Treasury Department (Office of the Treasurer), for example, offered a refresher course in typing to all affected employees who had some typing skills; employees who could then qualify for typing jobs were placed in these positions as they became available. Selecting EDP Personnel The creation of new jobs and the selection of personnel to fill them presented extensive admin istrative problems. Table 4 shows the staffing, in 1958, of primary EDP jobs as reported by 236 computer installations. Two-thirds of the em ployees were engaged in planning and programing activities for computers, one-fourth were digital computer systems (console) operators or periph eral equipment operators, and a small group, only 8 percent, administered the EDP systems. T a ble 4. N umber of E mployees in P rim ary E D P O ccupations ( as of M arch 31, 1958) a t 236 G ov ern m en t C omputer I nstallations Positions filled Prim ary E D P occupation N um ber A]] occupations __ -........ - - Digital computer a^n-noist-rator _ _ Digital computer management analyst______ - _______ Digital onmpntftr programfir ......................__ . Electronic teohnjoiftn „ Digital nnmpntfir systems operator.. . Peripheral equipment operator .— - Percent 3,742 100.0 301 615 1,773 83 621 349 8.0 16.4 47.4 2.2 16.6 9.3 N ote : Because of rounding, the sum of individual percentages does not equal 100. S ource : Use of Electronic Data-Processing Equipm ent, op. cit., p. 85. The agencies7 general practice in filling EDP positions was to select employees only from their own staffs. A 1958 survey (see footnote 3) of recruitment practices at 129 military and civilian agencies showed that nearly two-thirds of the agencies filled EDP positions only from their own staffs; one-tenth filled them only from outside sources; and one-fourth used both methods of recruitment. The reasons cited for preferring to recruit from within were the shorter training time required where the employee knows the paperwork process and the improvement in morale where there are advancement opportunities. At the same time, some reported that they needed to seek employees outside their own agencies because of the shortage of talent among their workers. Written aptitude and intelligence tests were widely used. Of 129 agencies reporting types of selection methods, 7 out of 10 administered one or more tests, primarily to applicants for programer and computer operator positions. In addition to various Civil Service examinations, tests designed specifically to show programer aptitudes were used. In cases where written testing devices were not used, interviews and other formal practices were frequently employed. The magnitude of the selection task is illus trated by the experiences of the Treasury Depart ment and the General Accounting Office. All the employees working in the units affected by the conversion were invited to take an aptitude test. Of 470 persons tested, 77 were selected for training, and 23 were assigned to electronic posi tions. Not only aptitude tests, but also super visors7 written evaluations were taken into account. Final selection of the 23 employees who 113 were to become the regular programers or opera tors was made on the additional basis of marks achieved in programing school and the satis factory performance of programing duties on subsequent detail assignments. Training in EDP Training for EDP operations was a complex task partly because of the various types required. Training was needed not only for the development of programers and console operators, but also for the orientation and indoctrination of higher levels of management. A survey for the Bureau of the Budget showed that the Government relied almost exclusively on computer manufacturers for the training of pro gramers and operators. Several sources were drawn upon to give EDP indoctrination to middle and top management—manufacturers, Govern ment agencies, universities, professional associa tions, and consultants, etc. The Government paid salaries and any tuition and transportation cost of trainees. Manufac turers generally provided free classes for pro gramers and operators from agencies using their equipment. An illustration of the extensive amount of formal training given is the program at the Philadelphia office of the Department of Insurance of the Veterans Administration, where 2,700 employees were involved. Representatives of computer manufacturers gave on-the-site courses to employees directly involved in computer operations; 20 persons were each given 150 hours of programing; 5 employees, 24 hours of peripheral equipment operation; and 5 persons, 12 hours of digital computer console operation. In preparation for other clerical jobs created by this EDP installation, several hundred employees and administrators were given classroom training dealing with use of records and documents in volved in programing. In addition, all 2,700 employees received orientation courses lasting 1% hours. Some agencies gave tests to trainees in order to weed out unsuitable candidates. At one agency, instructors gave periodic tests of material covered, with the result that 25 to 30 percent of the trainees were dropped out. At another agency, 7 percent of the programer trainees were dropped on the basis of monthly evaluation reports by supervisors. Attitude of Employee Organizations Officials of Government employees’ unions stated that they did not oppose automation, but wanted specific efforts made to avoid hardships arising from EDP installations. Some approved the advance preparations made by the VA, and they felt that similar efforts should be made prior to future technological changes. They suggested a number of specific protective measures. Vaux Owen, president of the National Federa tion of Federal Employees, recommended a fivepoint program: (1) Thorough and definite planning ahead . . . of all departments and agencies prior to adoption of automated procedures. (2) Retraining programs . . . for all em ployees before they are displaced by automation so that [they] may be qualified for reassignment to other positions. (3) Positive reassignment procedures . . . so that em ployees can feel some assurance they will get reassign ments in their own or another Federal agency. . . . (4) Definite placement programs . . . to place in suitable jobs in private industry those who cannot be reassigned in the Federal service. (5) Advance information . . . about plans for installing automated procedures, and just which categories of employees, and how many will likely be affected, and when. Owen also proposed “an inventory of the skills of the people in the different agencies” as well as an inventory “of those who want to develop new skills.” Besides making similar recommendations, George Riley, legislative representative of the American Federation of Labor and Congress of Industrial Organizations, called for early retire ment benefits for unretrainable employees af fected by automation who have a specified mini mum of service and are past a certain age. He also recommended severance pay for employees dismissed. A number of administrative changes were suggested to carry out these proposals. James K. Langan, operations director of the AFL-CIO Government Employes Council, suggested that “the Congress lay down a policy that would re quire the agencies to have personnel management work closely with the installation engineers to reduce to a minimum the adverse effect upon em ployees.” Riley recommended “the formation of a central transfer unit with authority to overcome resistance of uncooperative agencies.” James Campbell, president of the American Federation of Government Employees, called for a transfer facility in the Civil Service Commission which would serve as a governmentwide clearinghouse for reassigning employees and assisting displaced employees to relocate. Langan pointed out that Government employees do not have the same facilities for collective bargaining as employees in private industry have, and, consequently, that there is a challenge for the administration and the Congress to develop model personnel practices to handle the problem of automation. — R ic h ard W . R ich e and W il l ia m E. A l l i Division of Productivity and Technological Developments nU * U.S. GOVERNMENT PRINTING OFFICE : I960 0 — 576451