The OECD Working Paper ‘Algorithmic Management in the Workplace’ published yesterday reveals alarming adoption rates of workplace monitoring and evaluation tools, with inadequate protections in place for workers. Based on a survey of over 6,000 mid-level managers across six countries (France, Germany, Italy, Japan, Spain, and the United States), the findings confirm unions’ longstanding concerns about unchecked algorithmic management.
The adoption rate of algorithmic management tools has reached 90% in the United States and averages 79% across the surveyed European countries. In the US, 90% of firms use both monitoring and evaluation tools, with 55% monitoring workers’ conversations and communications – dramatically higher than Europe (6%) and Japan (8%).
The OECD’s findings expose significant gaps in worker protection and algorithmic accountability. Almost two-thirds of managers surveyed reported concerns about these tools’ trustworthiness. A significant 28% of managers report unclear accountability for algorithmic decisions, while 27% indicate both inadequate protection of workers’ physical and mental health and difficulty understanding the tools’ logic.
"This OECD report confirms what workers and unions have long warned about - the unchecked spread of algorithmic management is creating serious risks for workers' rights and wellbeing. When 27% of managers themselves raise concerns regarding inadequate protection of workers' health and a lack of accountability and transparency, we clearly need immediate action,"
The report cites evidence from worker surveys showing reduced job satisfaction, increased workloads, higher stress levels, lower trust, and increased job insecurity under algorithmic management.
Notably, evidence from Nordic countries shows these negative effects can be mitigated where workers have substantial influence over company decisions and meaningful engagement during implementation. This reinforces TUAC’s position that collective bargaining and worker participation are essential for successful implementation of these new technologies. However, the survey reveals that while 63% of firms claim to consult workers, these consultations primarily target managers rather than other workers.
TUAC welcomes the OECD’s recognition that policymakers “should promote social dialogue, including collective bargaining” and that firms “should provide workers with information on how to seek explanation, review and redress.” However, these recommendations fall short of the full, robust protections needed as algorithmic management becomes the workplace norm rather than the exception.
"The OECD stops short of addressing the fundamental power imbalance these technologies create. Without strong regulation and full collective bargaining rights, algorithmic management will continue to erode workers' fundamental rights,"
Image credit: OECD
