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Robot Technology: Case Study

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Robot Technology: Case Study
Summary

Manley Manufacturing, Inc., is studying the benefits that can result from increasing its use of industrial robots so Manley Principal, which he is the Vice President of industrial relations, meet with Kenny stoppum, president of the labor union local representing most of the company's industrial employees , to discusses the resulting impact of computer-integrated robotic systems on employment, workers, and jobs.

Principal then listed the major advantages associated with robots:

Improved quality of product due to the accuracy of robots.

Reduced operating costs, as the per-hour operational cost of robots was about one third of the per-hour cost of wages and benefits paid to an average employee.

Reliability improvements, as robots work tirelessly and don't require behavioral support.

Greater manufacturing flexibility since robots is readily reprogrammable for different jobs.

Make the company more competitive, which would allow the company to grow and increase its work force.

On the other hand the union believes that the company is giving their jobs to robots in order to reduce the labor force. So they intend to bargain the following contract provisions:

Establishment of labor-management committees to negotiate in advance about the labor impact of robotic technology and, of equal importance, to have a voice in deciding how and whether it should be used.

Retraining rights for workers displaced, to include retraining for new positions in the plant, the community, or other company plants.

Work to be spread among workers by use of a four-day work week or other acceptable plan as an alternative to reducing the work force.

The problem

The company needed an implementation plan that satisfies both side the company and the union's demands.

The plan

1. The company can grow and be more competitive by the use of robotic system for several reasons they mentioned:

Improve quality of product due to robot accuracy

Reduce operating costs by two thirds

The

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