The Intersection of AI and Unions: Strategies for Employers

The integration of Artificial Intelligence (AI) into workplaces worldwide is fundamentally transforming the labor landscape. As highlighted in Littler's expert analysis, "7 Ways Employers Can Avoid Labor Friction Over AI," multinational companies, particularly those based in the US, must prepare now to navigate this complex environment. 

Why it matters: Governments globally are ramping up AI regulation with a focus on minimizing job displacement, promoting transparency in AI use, and reinforcing the role of unions and worker representatives. 

U.S. patchwork approach: States like California and New York are enacting laws targeting AI bias in hiring and employment. Collective Bargaining Agreements (CBAs) are becoming battlegrounds for AI terms. 

• New York's amended Worker Adjustment and Retraining Notification (WARN) system now mandates disclosure of AI-related layoffs. 

• The Culinary Workers Union and Writers Guild of America have secured agreements including severance and retraining provisions to counter AI displacement. 

• The International Longshoremen's Association successfully negotiated a ban on fully automated technology. 

European rights-focused framework: The landmark EU AI Act strictly prohibits certain AI uses and mandates consultations with works councils before AI deployment, heavily emphasizing transparency and fairness. 

• The UK is exploring further protections through discussions around the proposed AI and Employment Rights Bill. 

Strategies for employers:

1. Understand obligations: Review existing agreements and anticipate future bargaining needs related to AI in the U.S. 

2. Engage proactively: Initiate discussions with labor unions and worker representatives before implementing AI to understand concerns and co-create solutions. 

3. Communicate: Clearly communicate the purpose, benefits, potential risks, and impacts of AI tools to the workforce--this can be a legal requirement e.g., under the EU AI Act. 

4. Collaborate on guardrails: Work jointly with unions to establish clear boundaries and ethical guidelines for AI use, ensuring fairness and consistency. 

5. Conduct impact assessments: Regularly evaluate how AI will affect job roles, tasks, working conditions, and employee rights. 

6. Reskill & upskill: Commit to workforce development programs that equip employees with the skills needed to adapt and thrive alongside AI.