Industrial Relations and New Technology

Annette Davies

• Publisher: Routledge
• Year: 2018
• ISBN:
  9781351256582
• Edition: 1
• Topic: Economics
• Subtopic: Economic Theory
• Index: Economics

New technology arguably provided the greatest challenge to industrial relations since the formation of unions. The problems raised led to a whole range of responses - from rejection of the new technology to acceptance fo the change with management and workers making new (and sometimes unheard of) agreements. This book, originally published in 1986 and based on extensive original research, examines the changes in industrial relations which the new technology of the 1980s caused, analysing the implications for the workforce and the reactions of the management and trade unions to the challenges.

PART I

PERSPECTIVES ON TECHNOLOGICAL CHANGE

Chapter One

THE TECHNOLOGICAL DEBATE

CURRENT DEVELOPMENTS AND CONCERNS

While the full potential of computer technology is only now beginning to be realised, excitement concerning automation via computerisation dates back to the 1950s. A publication in 1956 by the UK Department of Scientific and Industrial Research referred to developments then as ‘something new, beckoning us toward the electronic office and automatic factory’. However, the implications of this first generation of computer technology were not so dramatic. It was a technology which was essentially inflexible, and linked systems of machines, whether controlled by computers or not, could generally produce only one kind of product (Marsh 1982). Only with the introduction of microelectronics has the blueprint for the automatic factory been transformed into a possible reality.

Since the late 1970s the advent of microtechnology has aroused considerable debate and has succeeded in capturing the minds of academics, employers, trade unionists and governments alike. The result to date is a literature which is diverse and contradictory, with many predictions and speculations but little solid empirical evidence. It abounds with differing opinions concerning likely impact. Short term and long term perspectives are discussed with scenarios for working life as well as society at large. For some, microtechnology represents the dawning of a ‘new industrial revolution’ (Forester 1980), and has been described as the ‘most remarkable new technology ever to confront mankind’ (Maddock 1978). There are indications from others that the revolution will be rapid, with applications of microelectronics in commerce and industry proceeding apace, and the rate of diffusion and innovation being extremely high (Curnow 1979). However, it has also been argued that the process of change will be much more ‘evolutionary’ (Department of Employment 1979).

Despite these many disagreements, most of those involved in the debate are united in their recognition of the importance of adopting microtechnology. In September 1978 the Department of Industry set up a new Electronics Application Division with ‘the task of stimulating awareness of the competitive advantages offered by microelectronic techniques, and encouraging their adoption by companies in all sectors of British industry and commerce where they can be of benefit’. The Trade Union Congress (T.U.C.), in its report ‘Employment and Technology’ (1979), also argued that a large part of Britain’s trading and economic future will be determined in no small measure by its success in creating the skills and investment needed to exploit microelectronic technology. Similarly, the Confederation of British Industry (C.B.I.), at its national conference in 1979, unanimously resolved that ‘prosperity in the 1980s will depend upon investment in, and acceptance of, new technology which will promote competitiveness’. It has always been recognised that technological change plays a crucial role in economic growth. Is microtechnology so different that it merits such special attention?

A number of characteristics of microtechnology make it a special and interesting case of technical innovation. The first important feature of this technology is that it is one which can be mass produced and sold very cheaply. While it has long been possible to apply computers to perform some of the functions of microtechnology, expense and bulk have always been deterrents. For example, the first computer marketed in Europe in 1950, based on valves, cost nearly a million pounds and filled a room. By 1980 it had become possible to buy a microcomputer much more powerful, much faster, which is 30,000 times smaller, consumes 5 million times less electrical power and costs £200 (Green, Coombs and Holroyd 1980). The result is that microtechnology has brought computing power within the scope of much smaller sized businesses and organisations.

Secondly, not only has cost been drastically reduced, but the performance of the present technology is also significantly superior. It enables the extension or even the deplacement of human thinking and judgement, and the field of ‘artificial intelligence’ has benefited greatly by its utilisation. In terms of reliability, it far exceeds any engineering device to date, and also has the flexibility which enables swift and inexpensive changes in performance to be programmed. But, perhaps more significant than its present high performance rate is the fact that its development rate is much higher than for any previous electronic technologies. The speed of obsolescence not only of the ‘micro-chips’ themselves but also of the many systems which employ them is so great that there is hardly time to adapt to one stage of innovation before another emerges (Maddock 1978).

A third distinguishing feature of this technology concerns its wide range of applications. Microelectronics is capable of dealing with a great variety of tasks involving the reception, manipulation and transmission of information, and it can be used in any situation that currently employs some form of information processing technology, whether electronic, mechanical, pneumatic or hydraulic in nature (Lamborghini and Antonelli 1981). The use of the microprocessor ranges from consumer products to capital goods and to the automation and control of office procedures and industrial processes. Robotic devices have in recent years excited a great deal of interest, and observers believe that the number of ‘robots’ employed in factories will increase by something like 25% per year during the 1980s. The system designer’s dream of using computers to monitor production as a whole is slowly becoming reality. The result would be to turn complex non-routine production (like batch engineering) into a sophisticated process type industry – so called Computer Aided Manufacture (C.A.M.). Thus micro-technology, by reducing the size and cost of computers and increasing their power will give impetus to the diffusion of C.A.M. techniques (including robotic devices, numerically controlled machine tools, and new transfer and machine loading devices). The development of such systems could in theory result in an entirely unmanned machine shop, or at least unmanned areas. There are also visions of the ‘electronic’ or ‘paperless’ office with the convergence of such developments as word processors, data retrieval systems, ‘intelligent’ reprographic equipment and telecommunications facilities for electronic conveyancing of information (Department of Employment 1979). Such varied and impressive applications have all the indications of having an unprecedented impact.

Therefore, it can be argued that the above characteristics justify the consideration of microtechnology as a totally new and qualitatively different innovation. Most large companies are already applying some aspects of this new technology or making plans to do so, and they are being encouraged by large amounts of state investment. Since 1979 the U.K. government has made available substantial sums of money to publicise the potential of microtechnology through the Microprocessor Application Programme. The government also subsidises private companies directly in two ways. The electronics industry itself receives money from the Microelectronic Industry Support Programme, and for companies wishing to use microprocessors in their production methods, or in their products, there is money from the Microprocessor Application Project. In addition, all semiconductor companies are vitally interested in the expansion of the application market, and many have now set up application divisions. Also, many are closely associated with or part of equipment manufacturing organisations. Thus, given its unique characteristics and the incredible drive towards adoption, the eventual widespread application of microtechnology would seem to be assured.

Potential Problems

It has already been stated that there is no shortage of speculation concerning the implications this technology will have for both employment and society. Some argue that by being aware of the potential benefits of the microelectronics revolution, industrial society can be made qualitatively better than ever before. It can become a society in which people enjoy great leisure, realise their full potential in terms of creative talent, and enjoy the high quality low cost goods produced by the automated processes of the world’s industries (Forte 1979). However, others accuse the ‘new technology’ of bringing deskilllng, fragmentation and increased monitoring of the work process. Unlike previous periods of rapid technological innovation, every sector of the economy is being affected at once, and there is job loss everywhere. It is argued that workers whose jobs are destroyed by rationalisation, and those entering the labour force for the first time, will have nowhere to go (Counter Information Services report 1979).

While history may provide evidence of the long term success of technological progress in raising wages and general standards of living (Musson 1980), it would be misleading on that basis to overlook many of the short term problems which may arise. Jenkins and Sherman (1979) suggested that:

The person made unemployed in a provincial town does not care whether or not it is in Britain’s interest to adopt new technologies overall nor about the macro-economic effects of doing so, for two reasons. The first is that the national economy means nothing real to that person, or indeed to any individual; the second is that any benefits that accrue will not immediately benefit that person.

Whatever the eventual impact, a number of manpower issues are likely to emerge as areas of concern during the implementation of any technology, and because of the special characteristics of microtechnology it is argued that such issues are now of extreme concern. Two particular manpower problems which have received considerable attention are job loss and skill changes.

The Impact on Jobs.

The potential for substantial savings in labour input with microelectronics has caused much concern and anxiety. Predictions of how much work will be lost range from those of mass unemployment to more conservative estimates of labour displacement. Many examples of job loss or reduction in job opportunities resulting from microtechnology are already evident in many industries (Thornton and Routledge 1980; Department of Employment 1979). It has been argued that in such areas as telecommunications, assembly, warehousing, printing and publishing, there is sufficient evidence available in Europe, Japan and the United States to conclude that labour displacement consequences may be very severe indeed. There are cases on record of the labour force being halved in spite of substantial increases in production (Freeman 1980). Products which incorporate microtechnology have also resulted in job loss. Cash registers, for example, have led to the reduction of that industry’s manufacturing workforce by 50%; and rationalisation of the office, especially through the introduction of word processors, is now a real and economic possibility (Downing 1980). A major problem in this area, however, is to identify whether job loss has resulted from microelectronics or from an increase in unemployment linked to quite different factors. For example, Francis and Willman (1980) have suggested that an unemployment figure of 4.5 million is likely to come about by the end of the decade regardless of the impact of new technology and mainly as a result of the gap between the rate of economic growth and the rate of growth in the number of those seeking employment. Due mainly to bulges in the birth rate 10 to 15 years ago, it is suggested that there will be an extra 2.5 million workers entering the labour market up to 1991. It is also feasible that job loss will result if Britain fails to innovate at a rate similar to those of her overseas competitors.

Even those who adopt more conservative estimates of the employment effects recognise the possibility of severe transitional unemployment. It is argued that while the overall demand for labour may remain high, there might be, at least temporarily, high levels of unemployment as jobs are lost from traditional sectors and potential new jobs take time to emerge. If this occurs against a background of already high unemployment, it is possible that these transitional effects could have serious implications (Francis and Willman 1980). As a final point it should be emphasised that the job reduction argument is not a simple one. Technological change must be viewed within the context of economic, social and political factors which are influential in directing ‘technological impact’. These factors will be discussed in the next chapter.

New Skills and Retraining.

Two quite different scenarios may also be found depicting the effects of microtechnology on skills. On the one hand, microtechnology has been accused of removing much of the skill associated with some jobs, making them less satisfying (Cooley 1979; Noble 1980). On the other, it is argued that the skill level in certain jobs has been increased with the new technology, or that there has simply been retraining, much of the change being from mechanical to electronics skill (Sorge 1979). Such changes in skills, whether an upgrading or a deskilling, have already led to industrial relations problems and demands for increases in pay to either compensate for the monotony or to reward the acquisition of new skills. Changes in skill requirements are also likely to raise questions of union jurisdiction (Bamber 1980), as members of one union are redeployed to another area of work represented by a different union.

At present the type of occupation most at risk from microelectronics is characterised by being repetitive, routine and relatively simple (Jenkins and Sherman 1979). The occupations in which job opportunities will be created are mainly technology related, and prominent among these will be those involving computer specialists (including both hardware engineers and programers). A number of studies have outlined the mismatch in Britain between the skills currently available and these future requirements (Bessant et al 1981; Pavitt and Soete 1980; Rothwell 1979). Provisions for the selection and training of those to be retrained are further issues of concern.

Another potential problem is the polarisation of the workforce, producing a relatively small technological elite, able to move with and enjoy the advancing technologies, and a much larger proportion of work people whose skills have become outmoded, and who lack the education or motivation to adapt to change (Maddock 1979). It is feared that if such a two-tier society should emerge, with work and the fruits of work not uniformly shared as a result of technological change, some form of social breakdown may occur (Curnow 1979).

With the likelihood that microtechnology will lead to a number of manpower problems, the satisfactory resolution of these problems will require much discussion and negotiation. It has often been stated that manpower adjustment is the most difficult and important element of technological change (Lawrence 1969; Mumford and Pettigrew 1975), and one which is all too often ignored in the pursuit of organisational goals such as financial and technical efficiency. Workers who operate the new technology must at least be willing to work with the technology, and in some cases must want to work with it. If such an attitude is missing, the technology, however advanced, will become inefficient.

TECHNOLOGY, CHOICE AND THE QUALITY OF WORKING LIFE

During the past 20 years a great deal of literature has been generated around the topic of individual and organisational responses to increased automation and other forms of technological change. A main debate in this area concerns the existence of a technological imperative within organisations and society. Studies which demonstrate a variable technological impact are usually cited in support of the position that the technology itself is largely indeterministic. On this assumption the socio-technical approach to organisations and the concept of ‘organisational choice’ was founded.

The concept was formulated as a result of several field projects undertaken by the Tavistock Institute for the British coal mining indu...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Dedication
• Table of Contents
• List of Tables
• List of Figures
• INTRODUCTION
• PART I: PERSPECTIVES ON TECHNOLOGICAL CHANGE
• 1. THE TECHNOLOGICAL DEBATE
• 2. THE CONSTRAINTS ON CHOICE AND THE POLITICS OF CHANGE
• 3. THE INDUSTRIAL RELATIONS CONTEXT OF TECHNOLOGICAL CHANGE
• 4. PARTICIPATING IN CHANGE
• PART II: A CASE STUDY – THE BREWING INDUSTRY
• 5. A MODEL AND A METHODOLOGY
• 6. THE APPLICATION OF MICRO-TECHNOLOGY IN THE BREWING INDUSTRY
• 7. THE IMPLICATIONS FOR THE WORKFORCE
• 8. THE MANAGEMENT/UNION RELATIONSHIP
• 9. STRATEGIES AND POLICY IMPLICATIONS
• 10. CONCLUSIONS
• APPENDICES
• B. Questionnaire and Interview Schedules
• REFERENCES
• AUTHOR INDEX
• SUBJECT INDEX