The Australian Council of Trade Unions (ACTU) is advocating for legislation that would prevent employers from implementing artificial intelligence (AI) systems that could lead to mass job redundancies. This bold proposal is set to escalate tensions ahead of the Albanese government’s productivity roundtable scheduled for August 19-21, 2023. ACTU assistant secretary Joseph Mitchell will deliver a speech at the Melbourne University Productivity Flash Forum, emphasizing the need for job security guarantees before AI is adopted in workplaces.
Mitchell plans to highlight that a comprehensive AI act is essential to shield workers from potential misuse of AI technologies. “Workers will be all in if they know doing so will not cost them their jobs,” he will assert, according to draft notes of his speech. The ACTU’s push for these safeguards comes in response to concerns over the impact of AI on employment, particularly following announcements of job cuts in various sectors.
Business groups, on the other hand, argue that AI represents a multibillion-dollar opportunity for Australia to enhance productivity. They contend that the technology can facilitate the transition of workers to higher-skilled roles, thereby improving overall economic performance. However, they caution that any legislative measures should not hinder the adoption of AI within businesses.
Mitchell’s address will underscore a crucial point: significant productivity gains can be achieved when AI is integrated in a collaborative manner that respects workers’ skills. “Employers should be required to reach AI-implementation agreements with their staff before new technologies are introduced into workplaces,” he will state, advocating for agreements that encompass job security, privacy, and retraining requirements.
The upcoming productivity roundtable, hosted by Treasurer Jim Chalmers, aims to generate ideas for economic reform to address Australia’s stagnant productivity levels. Previous summits held by the Albanese government have led to the enactment of key union priorities, including provisions for labor organizations to negotiate across multiple employers, which have met with resistance from business groups.
Mitchell expressed concerns over the adoption of AI without adequate guarantees for workers. “We don’t think there is a case for AI to be adopted to cause mass redundancies,” he noted. He emphasized the necessity for transparency and collaboration in the AI implementation process to foster trust among employees.
In a recent example of the ongoing impact of AI in the workforce, the Commonwealth Bank announced plans to cut 90 jobs, citing the introduction of AI systems and cheaper offshore labor as driving factors. The Finance Sector Union reported that of these job cuts, 45 positions were eliminated due to the implementation of a chatbot system on the bank’s inbound customer inquiries line in June.
FSU national secretary Julia Angrisano criticized the bank’s approach, stating, “Our members want to be trained and supported into better jobs that leverage AI. Yet rather than invest in its people, the CBA is simply discarding Australians through ongoing redundancies and offshoring.”
A spokesperson from the Commonwealth Bank defended the decision, asserting that while the 45 roles would be replaced by AI, the change would create opportunities for new positions. “By automating simple queries, our teams can focus on more complex customer queries that need empathy and experience,” they stated. The bank emphasized its commitment to supporting affected employees through options for redeployment and access to career transition services.
Employment law expert from the University of Melbourne, Alysia Blackham, warns that early adoption of AI by employers could lead to ineffective outcomes. She noted that the technology is not yet fully mature and may produce bias or discrimination. “Bringing employees along on this technology journey is going to be critical in building trust in these tools,” she remarked.
The federal government has indicated plans to legislate the use of AI in high-risk settings but has yet to present these proposals in parliament. The ACTU’s recent call for stricter regulations comes at a pivotal moment, as the impact of AI on job security continues to be a contentious issue in Australia’s evolving labor market.
