Algorithmic management in traditional workplaces

Insights from the transport, logistics, and retail sectors

17/09/2024

Stay tuned! This policy study will be available soon!

Algorithmic management, utilising algorithms and artificial intelligence to oversee and direct workers, is increasingly shaping the landscape of European workplaces. While narratives of technology-driven workplace transformation are alluring, the realities of increasingly automated and digitalised management present cause for concern. This EU policy study explores these impacts with a focus on the unique labour environments of the Nordic countries—Finland, Sweden, and Norway—where long-standing traditions of labour organisation intersect with rapidly advancing technologies.

Through detailed case studies across various sectors, including transport, retail, and finance, the report uncovers how these digital tools can exacerbate worker stress, diminish autonomy, and heighten job insecurity. However, it also identifies scenarios where meaningful worker participation and robust union involvement have mitigated these negative effects, showcasing the potential for more equitable outcomes.

The study highlights critical issues such as the erosion of worker rights, the increasing imbalance of power between labour and capital, and the pervasive nature of workplace surveillance. It provides targeted recommendations for EU policymakers, urging the implementation of stronger legal safeguards, greater transparency in algorithmic processes, and enhanced roles for trade unions in shaping the digital transformation.

This report advocates for a European approach that prioritises worker welfare alongside technological advancement, drawing lessons from the Nordic model to guide policy across the continent. A series of recommendations are offered to protect worker rights and well-being in the immediate instance, and also to redress the growing imbalance of power between labour and capital which emerging technologies threaten to exacerbate.

Case studies for each country analysed in “Algorithmic management in traditional workplaces” are available below. Each study focuses on a country based on the qualitative interviews from the pan-Nordic study in English.

Algorithmic management and workplace digitalisation in Finland

Algorithmic management, the use of algorithms and artificial intelligence to direct and control workers, is increasingly reshaping the modern workplace. These technologies are touted as pathways to greater efficiency, productivity, and streamlined operations. However, the reality is far more complex. While digital tools have the potential to revolutionise work, they often lead to heightened pressures, reduced autonomy, and increased precarity for workers.

This policy study investigates the impacts of algorithmic management and digital technologies on traditional employment in Finland, with a particular focus on the transport, logistics, and retail sectors. Through qualitative case studies, it captures the lived experiences of workers and trade unionists, revealing how these technologies are altering workplace dynamics. The research highlights that trust and collaboration between employers and employees are crucial in determining whether these tools support or undermine worker welfare. As workers become deeply involved in generating the data that drives these systems, concerns around privacy, surveillance, and value distribution are increasingly pressing.

Offering detailed recommendations for Finnish policymakers and trade unions, the study emphasises the need for transparency, strengthened legal protections, and proactive strategies to ensure that technological advancements benefit both workers and businesses.

Network
Cevea
Economic Council of the Labour Movement (ECLM)
Friedrich-Ebert-Stiftung
Kalevi Sorsa Foundation
Samak
Tankesmedja Tiden
Tankesmien Agenda
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