Many Australian manufacturing establishments developed during the 'long boom' of 1950-1970, when dedicated, deskilled operations dominated workplace design. Trade restrictions and institutional factors contributed to a constrained manufacturing environment. Participation in change processes is now part of Government's effort to encourage world competitiveness and is supported by the union movement and industry. Government assisted programs now aim for skill upgrading, improved work environment, and participative operating systems. A case study description outlines the measures taken by an automotive friction products manufacturer to improve quality and overcome workforce concerns over the lack of training, absence of skill recognition and limitations to skill development. Participative quality, technology improvement and multiskilling programs were introduced to improve worker-machine interface, flexibility, skill and reward systems. The firm's progress is described, including measures of improvement, and developments are related to the Australian situation.