Here is just an example of what I mean. Locally we have a heavy reliance on manual setup of machines in some of our industries.

An automated process relies less on manual setups and much more on a skilled operator that has an electo/mehanical /automation understanding of the process and how the a automated process/machine operates. A multi-skilled operator that can use a machine like this can be much more efficient than many semi-skilled or non-skill employees combined.

So, on an output metric, a much better trained worker with a more expensive skill set can out produce the other workers.

Sure, there is a higher cost to having that one worker on your staff in terms of wages, but it is offset by not having many workers producing the same level of output in terms of combined wages/benefits.

Secondly, there is an advantage to the highly skilled electo/mechanically trained worker in your factory.

They are able to move to other machines/processes with ease because of highly educated nature of their manufacturing background.

This is especially valuable to the employer in a Lean Manufacturing environment.

Thirdly, on an Organizational Behavior Metric, a skilled employee tends to use, or employ, his/her education background in a different way than a non-skilled or semi-skilled wage earner. A Skilled Automation Technician/Machine Operator is interested in furthering their skilled sets in” job enlargement” situations.

An example I am directly familiar with is the situation I experienced at Allen Bradley’s Focus Factory in Eau Claire. The idea was to employ multi-skilled employees that not only could repair/operate the machine a an technician level but also produce parts and do quality control and statistical analysis to a level a CMM op would normally do.

By combining all these functions together with highly skilled employees huge cost savings could be achieved with high production rates and reduced scrapage.

I’d rather not comment on Union vs. Non-Union because this is not a question of Employment Structure, rather it is a opinion on Employment of the Skilled vs. Non-Skilled Labor and its impact on efficiencies in an Automated Lean Manufacturing Environment.

My impression of some Union Shops, e.g. Boeing, is that they have highly skilled & highly educated workers that just happen to be unionized.

Just so you know my backgound - I grew up in a small family machine shop environenment and was a CMfgT (Certified Manufacturing Technician) through the Society of Manufacturing Engineers.