Algorithmic management in traditional workplaces

Policy Study

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 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.

Algorithmic governance and co-determination in Norway: Insights from white-collar workers and trade union representatives in the finance and news media industries
By Tereza Østbø Kuldova and Gudrun Rudningen

This report focuses on the intersection of algorithmic governance and co-determination in the financial and news media industries of Norway. We interrogate the possibilities and limitations of the Norwegian (micro) model vis-à-vis new data-driven technologies and their impacts on workers. Zooming in on highly skilled white-collar workers in a standard employment relationship in heavily digitised workplaces, we offer a unique view of the perceptions of these white-collar workers and trade union representatives, as well as of the effects of algorithmic governance and co-determination in practice.

We show how algorithmic governance and the use of data- driven analytics fundamentally reshape not only how workers are known to employers, and hence, managed, but also how they see themselves and their work. The digital revolution has increased the informational and power asymmetry between the employer and workers, in favour of the employer. Now, more than ever, we need strong trade unions and increased institutional power, national regulation, and training, and competence building for trade union representatives.

Algorithmic management: Experiences and responses. Explorative study of companies and trade unions in the Swedish warehousing, retail and transport industries
By Carin Håkansta, Ruben Lind, Pille Strauss-Raats and Pontus Blüme

This report presents results from a study set in Sweden on the ramifications of digital technologies and algorithmic management (AM) and how technology affects the prospects for workplace co-determination and democracy. It specifically looks at the effects of AM on work and workers’ rights in non-platform work, workers’ response to AM-related issues, and the implications of these results for trade unions, solidarity, and policy.

The study is based on semi-structured interviews with informants in the retail, warehousing, and transport sectors in 2024 including five full-time trade union employees and 16 workers/trade union representatives.

The Swedish context is characterized by co-determination and occupational safety and health (OSH) legislation that supports workers’ voice and comparatively high levels of collective agreement coverage and affiliation to workers’ and employers’ organisations. Although by tradition positive to new technology, Swedish unions have been hesitant to the introduction of EU laws regulating AM due to the preference to solve labour matters via collective agreements rather than legislation: the hallmark of the Swedish labour market model.