Automation refers to the introduction of electronic control and automatic operation of productive machinery. It reduces the human factors, mental and physical, in production and is designed to make possible the manufacture of more goods with fewer workers. The development of automation in American industry has been called the 'Second Industrial Revolution'.

Labor's concern over automation arises from uncertainty about the effects on employment, and fears of major changes in jobs. In the main, labor has taken the view that resistance to technical change is unfruitful. Eventually the result of automation may well be an increase in employment, since it is expected that vast industries will grow up around manufacturing, maintaining, and repairing automation equipment. The interest of labor lies in bringing about the transition with a minimum of inconvenience and distress to the workers involved. Also, union spokesmen emphasize that the benefit of the increased production and lower costs made possible by automation should be shared by workers in the form of higher wages, more leisure, and improved living standards.

To protect the interests of their members in the era of automation, unions have adopted a number of new policies. One of these is the promotion of supplementary unemployment benefit plans. It is emphasized that since the employer involved in such a plan has a direct financial interest in preventing unemployment, he will have a strong drive for planning new installations so as to cause the least possible problems in jobs and job assignments. Some unions are working for dismissal pay agreements, requiring that permanently dismissed workers be paid a sum of money based on length of service. Another approach is the idea of the "improvement factor", which calls for wage increases based on increases in productivity. It is possible, however, that labor will rely mainly on reduction in working hours in order to gain a full share in the fruits of automation.