The effects of artificial intelligence (AI) in business life are becoming increasingly evident. Algorithmic management systems, especially in key processes such as recruitment, performance management and dismissal, have started to play a central role in human resources processes. The Institute of Employment Rights (IER), an independent organization that develops policies in the fields of labor law, trade union rights and working life, comprehensively addresses the legal and social impacts of this transformation in its report titled "Algorithmic Management and Next Generation Rights at Work". In this Article, we would like to share with you the following highlights of the report.
Risks of Data-Driven Management
The report reveals that AI-based algorithms are being used not only for productivity, but also for monitoring, classifying and, when necessary, punishing employee behavior. It is criticized that making these decisions without human oversight would not be sufficient to achieve fair outcomes.
Case Studies: Amazon and Uber
One of the examples in the report is that employees at Amazon's logistics centers are monitored with handheld devices and scored by algorithms based on performance indicators such as "off-task time" and "picking speed". Similarly, Uber drivers can be monitored by algorithmic management systems and scored based on customer evaluations and rule compliance. It is only on the basis of these scores that employees are warned or dismissed, leading to criticism. In our opinion, in order to ensure fair results, it is an important stage to make an evaluation with human supervision, not relying solely on AI data.
Challenges of Algorithmic Management
The report provides a comprehensive analysis of why these systems are so problematic. Accordingly, three main topics stand out:
1- Employee Representation: Lack of transparency makes it difficult to understand how algorithms work. Most workers are not informed about how the system works and appeal mechanisms are often ineffective. This uncertainty also limits the ability of trade unions to intervene.
2- Fair Working Conditions: Algorithms increase the speed of work, but often at the expense of physical and mental health.
3- Human Rights Violations: Fundamental rights such as privacy, non-discrimination and freedom of association can be violated by algorithms. For example, systems tracking union membership or discriminating based on indirect indicators such as ethnicity are considered a major threat.
Regulatory Recommendations
The report emphasizes that existing legal frameworks are inadequate, but recommends some basic steps:
- Appointment of 'technology representatives' elected by workers or appointed by trade unions,
- Requiring prior collective bargaining for algorithms affecting working conditions to be used in the workplace,
- Testing algorithms for human rights compliance,
- Prohibition of disciplinary sanctions and dismissals based solely on algorithmic data,
- Monitoring and compliance auditing of AI systems through an independent and competent audit organization.
The report's recommendations represent a holistic approach that extends not only to labor law, but also to data protection, ethics and human rights.
Evaluation
Algorithmic management has become an inevitable reality of modern working life. The fact that these management systems make decisions that directly affect human lives makes it imperative that law and human rights are explicitly engaged. The IER's report has not only identified risks and criticized practices, but also put forward alternative and feasible recommendations. In our view, one of the most critical recommendations is to ultimately monitor human surveillance and not to adopt a system based solely on algorithmic data. Shaping legal regulations in line with these recommendations is critical for ensuring fair working conditions in the digital age.
You can access the full report from this link.