The march of the machines in the sector
might seem like a threat to employees. Careful
planning and creative thinking can turn it into
an opportunity for companies
and employees alike.
In 1908,
Ford introduced the
Model T. Each vehicle was
manually assembled and dragged down
the production line. By 1913, Ford had revolutionised
mass production and unveiled the first moving-chassis
assembly line. 104 years later, Ford is now able to
manufacture cars in “smart” factories laden with
reprogrammable robots.
As Industry 4.0 moves us closer to a “smart”
factory model, robots and new technology are
increasingly reducing the labour required and this will
undoubtedly
continue as technological
capabilities increase. Boards and HR departments
across the world are facing internal pressures to save
costs by using an automated workforce, but what about
their existing staff and their employment rights?
These challenges will be all too familiar
for the manufacturing sector where automation
has paved the way in improving productivity and
competitiveness. The Manufacturer reports that two-thirds
of UK manufacturing businesses committed to major
automation projects over the last two years, however,
figures from the Engineering Employer’s Association
show that
the sector employs 2.6 million
people. With futuristic capabilities in technology set to
improve, are these people at risk of changes to their
employment or redundancy?
The key is to manage expectations and
maintain good relations with employees to prevent
them from feeling threatened by automation. Most
employees will value an honest approach and being
clear about what may happen in the future may ease
concerns around the introduction of new technology,
particularly if employees gain new skills as they learn
to use it, engaging employees and (where relevant)
trade unions or workforce bodies early in the decision making
process may benefit the business and help
identify where efficiencies may be made. Optimising an
employee’s capabilities in this way helps employees to
increase output by highlighting where equipment can be
used more effectively. Bear in mind that opportunities
to develop new skills should be offered to all relevant
employees, and no assumptions should be made about
ability or interest in the training because of age, gender
or any other protected characteristic.
Your workforce may be uncertain about
what the future holds, but new technology will require
management to monitor its efficiency and performance;
therefore, human intervention will always be needed. You
should also consider whether automation truly enhances
your business. In some cases, customers may prefer a
tailored human touch or the work required may currently
be too complex for a machine.
There may be knowledge gaps elsewhere in
your business, such as in research and development
or strategic planning.
Removing an aspect of work
on a production line may enable
employees to focus their attention onto other
projects, which would boost creativity and generate
ideas, in turn increasing efficiency, working conditions
and job satisfaction. Figures from Deloitte show that
whilst 800,000 lower-skilled jobs have been lost due to
technology, it has created nearly 3.5 million higher-skilled
jobs, which pay on average £10,000 more per annum
and that suggests a positive future ahead for existing
employees and apprentices joining the manufacturing
industry.
In the short-term, the economy will remain
dependent on manpower; however, inevitably, some
jobs will change. The focus should be on managing
expectations, engaging with employees, justifying any
changes and ensuring that any necessary changes are
fair and implemented in accordance with contractual
provisions.
Published: 16 May 2017
Focus on Manufacturing - Edition 5
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