ABSTRACT
This chapter looks at some of the broader wage effects of technological change. It examines the role of productivity agreements in determining manning and wages, particularly where technological change has led to certain major changes in labour-force structure. One of the benefits of technological change is that it generally makes possible a reduction in labour requirements per unit of output, thus increasing the efficiency with which a scarce factor of production is used. Productivity agreements have also been used to improve efficiency by removing demarcation lines between unions and increasing the flexibility of the labour force by challenging conventional assumptions on what jobs particular groups of workers should do. Most of the problems over manning standards for new equipment arise from the degree of discretion which is available in their determination. A particular manning standard has both quantitative and qualitative elements. The scope for discretion in setting manning standards also depends on the type of machinery or operation being considered.
