An emerging U.S. employment system is the Security, Employee Involvement, and Training (SET) system. The system is characterized by the following: (1) a high degree of employment security based upon flexible job assignment; (2) employee involvement in problem solving and continuous improvement; and (3) continuous training of all employees. Case studies of five firms that are attempting to establish or maintain SET indicate variation in the degree of successful transition to a SET system. A working SET system is in place at Together Manufacturing and Valley Life; Traditional Manufacturing has been unable to put together all the elements of SET; Hi-Tech's plants range from successful SET factories to traditional ones; and CommEx has been in retreat from SET. The study discovered the following: (1) the maintenance of strong employment security practices at Together and Hi-Tech; (2) repeated decreases in the work force and weakening of employment security provisions at CommEx; and (3) a one-time downsizing at Valley Life. Together's commitment to employment security has been successfully tested by a period of reduced product demand; Hi-Tech's has not. Hi-Tech has instituted a new basic skills test as a minimum standard for employees. Together and Valley Life have made learning a part of daily work. Companies that have successfully instituted SET systems have put all three parts of the SET triangle in place. Research suggests implications pertaining to initial education, further education and training, and restructuring of the work process within schools. (50 references) (YLB)