Some researchers have found that unionized firms are less likely to pursue automation because high wage demands deprive them of the necessary capital required to invest in advanced manufacturing technology (AMT). It has also been suggested that stringent work rules and technology agreements can make the substitution of new technology for union labor too expensive. Others have found, however, that the pursuit of high wage policies and the resultant requirement for improved worker and machine productivity can create a positive environment for technological change. This exploratory study examines the relationships between firm‐level union status and the adoption and performance of AMT in the discrete parts durable‐goods manufacturing industry. Analyses of our sample, which included Chi‐square tests, t‐tests, correlation analyses and multiple linear regression analyses, revealed a union effect on the adoption of just‐in‐time technology and a moderately positive union effect on performance. Results of analyses of the impact of union status, firm size and several human factor variables on firm performance are also presented and discussed.
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