Category : HR Technology
bibhasb@indianoil.in & karang@indianoil.in
This article explores the evolving relationship between Industrial Relations (IR) and Artificial Intelligence (AI) in today’s workplace. While many HR professionals focus on areas like talent management and learning & development, IR continues to be crucial in maintaining stable labour relations and reducing workplace conflicts. AI offers exciting possibilities, but it also brings challenges in the context of IR, including job displacement, skill development and ethical concerns like algorithmic bias.
The role of unions is more important than ever as they work to protect workers’ rights, ensure fair treatment and advocate for reskilling programs to help employees adapt to AI-driven changes. The article also discusses the broader implications of AI on industrial relations and highlights the need for balance -embracing technological advancements while prioritizing human well-being and maintaining equitable workplaces.
IR – HR with a weak PR
For many new HR practitioners, Industrial Relations (IR) has been considered a thing of the past, with many of them focusing their energies on other aspects of HR, be it Talent Management, Learning & Development, Performance Management, etc. In fact, it would not be incorrect to say that with the constant hype towards other emerging aspects of HR, IR has taken a back seat. Further, with the decrease in labour unrest cases, many have assumed that the role of IR has reduced. However, on the contrary, it is smooth IR that has led to negligible Man-days loss across various industries.
For many, IR is only handling Unions, Labour Authorities, Environment Activists, etc. But in today’s competitive business age, IR is not only about boundary management, but it is much more than that.
Therefore, the relevance and significance of IR cannot be underestimated, especially considering its impact on the overall business environment.
Disruptive Technologies
Similarly, technologies like Artificial Intelligence, Machine Learning, etc., have completely transformed every aspect of our businesses. For modern managers, understanding and leveraging these technologies has become one of their major KRAs, and therefore, we are witnessing numerous changes in our existing business processes because of these technological disruptions.
With AI systems getting more sophisticated in understanding human emotions, techniques like VR (Virtual Reality) and Augmented Reality (AR) will be a game changer for us. New-age HR leaders have already started leveraging these technologies in the fields of Strategy, Innovation, Decision Making and overall creating an inclusive and agile workplace.
However, it is equally important to evaluate the impact of such changes from the human aspect. Although these transformations have shaped the growth of the marketplace, yet, it is highly critical to measure their impact on the workforce.
Our Problem Statement: AI and IR – An Evolving Journey
With AI providing unique and measurable solutions to our business problems, the solution is not just mere implementation but also taking all the stakeholders on the same page for the organization to grow organically.
The impact of AI on industrial relations and unions is a complex and evolving topic. AI technologies have the potential to transform various aspects of the workplace, including job roles, work processes and the overall employment landscape.
In the present scenario, industrial relations are evolving rapidly due to various factors, including the changing demographics of the workforce, a shift in the mindset of union representatives and the increasing pace of work requirements. With a younger workforce entering the labour market, there is a growing demand for more flexible work arrangements, greater autonomy and a focus on work-life balance. This demographic shift is influencing union representatives to adopt new approaches to address the needs and concerns of younger workers, such as advocating for digital skills training, promoting remote work options and championing diversity and inclusion initiatives.
Moreover, the fast-paced nature of modern work environments, driven by technological advancements and globalization, requires unions to adapt quickly to meet the changing needs of workers. Union representatives are increasingly recognizing the importance of staying informed about emerging technologies, such as AI and automation and advocating for policies that ensure workers are not left behind in the face of technological change. This includes advocating for retraining and upskilling programs to help workers transition to new roles and industries.
Literature review:
The impact of AI on industrial relations has been widely explored in the literature, with various perspectives and insights offered by scholars. Brynjolfsson and McAfee (2017) discuss how AI and automation are reshaping work dynamics, leading to both opportunities and challenges for workers and organizations. They highlight the need for adaptability and innovation in navigating the ‘second machine age’. Davenport and Ronanki (2018) provide insights into the practical applications of AI in business, emphasizing its potential to transform various aspects of operations, including human resource management.
Lee and Kim (2021) delve into the specific implications of AI and machine learning in human resource management, emphasizing the revolutionary potential of these technologies in shaping work and employment relations. They highlight the importance of understanding and harnessing AI capabilities to enhance organizational performance and employee well-being. Kochan and Dyer (2020) evaluate the current practices of integrating AI into human resource management, emphasizing the importance of responsible AI implementation to ensure positive outcomes for both employees and organizations.
De Dreu and Gelfand (2008) provide insights into the sources and dynamics of workplace conflict, highlighting the importance of understanding and managing conflicts effectively in the context of AI-driven changes. Eaton and Garvis (2017) explore organizational culture through metaphorical representations, offering a nuanced understanding of how cultural dynamics may influence the adoption and impact of AI technologies within organizations.
Furthermore, scholars such as Dignum (2018) and Floridi and Cowls (2019) emphasize the ethical dimensions of AI deployment, advocating for responsible AI practices that align with ethical principles and societal values. Boudreau and Jesuthasan (2020) propose a four-step approach for applying automation to work, highlighting the importance of strategic thinking and careful planning in maximizing the benefits of AI while minimizing potential disruptions to employment relations.
Overall, the available literature underscores the complex interplay between AI technologies, organizational practices and employment relations, highlighting the need for thoughtful consideration of the ethical, social and economic implications of AI deployment in the workplace.
Common concerns of Unions:
The present scenario calls for union representatives to embrace a proactive and innovative approach to industrial relations, one that is responsive to the evolving needs of a younger, tech-savvy workforce and the challenges posed by rapid technological change. However, Unions may have several concerns related to the adoption of AI in work processes.
Changing Job Roles: AI can automate certain tasks and processes, leading to changes in job roles and skill requirements. Some jobs may be eliminated or significantly altered, while new job roles may emerge.
Workforce Monitoring: AI enables the collection and analysis of large amounts of data on employee performance, behaviour and productivity. This can have implications for worker privacy and surveillance. Unions may be concerned about the use of AI-powered monitoring systems and advocate for worker privacy rights and protections.
Job Loss and Worker Displacement: One of the primary concerns for unions is the potential loss of jobs due to AI-driven automation. They worry that certain job roles may become redundant or significantly reduced, leading to unemployment or underemployment for workers. Unions may advocate for measures to protect workers from job loss, such as retraining programs, job security provisions, or the creation of new job opportunities.
Skills and Training: New technology adoption often requires workers to acquire new skills or upgrade their existing skill sets. Unions may be concerned about the accessibility and availability of training programs to help workers adapt to these changes. They may advocate for comprehensive skill development initiatives, ensuring that workers have access to training opportunities to enhance their employability in the AI-driven workplace.
Overtime and Working Hours: Unions may express concerns about the potential impact of AI on working hours and overtime. While AI can increase productivity and efficiency, unions may worry that employers may exploit AI technologies to demand or eliminate overtime opportunities. They may advocate for fair working hour policies, adequate rest periods and safeguards against excessive work demands.
Health: Unions may raise concerns about the physical and mental health implications of increased reliance on AI technologies. They may advocate for proper risk assessments, training on AI system usage and the inclusion of worker safety considerations in the design and deployment of AI technologies.
Fairness and Equity: Unions may be concerned about the potential biases in AI systems and the impact on worker fairness and equity. They may advocate for transparency and accountability in AI decision-making processes, especially when it comes to areas such as hiring, promotions and performance evaluations.
Collective Bargaining and Worker Representation: Unions may be concerned about the impact of AI on collective bargaining and worker representation. They may seek mechanisms to ensure that AI-related decisions and policies are subject to negotiation and collective agreements. Unions may advocate for worker representation in decision-making processes related to AI implementation to safeguard workers’ interests and ensure a fair distribution of benefits.
Impact of AI on industrial relations and unions.
Collective Bargaining: As AI technologies affect the workforce, unions may negotiate for provisions related to AI implementation. This can include aspects such as training and re-skilling programs for workers affected by automation, safeguards against unfair use of AI in employment decisions and opportunities for workers to participate in decision-making processes related to AI implementation.
Skill Development and Training: AI-driven automation may require workers to acquire new skills or adapt their existing skills. Unions can play a crucial role in advocating for comprehensive training and re-skilling programs to ensure that workers can effectively adapt to changing job requirements and remain employable.
Job Creation and Displacement: While AI can lead to job displacement in certain areas, it can also create new job opportunities. Unions may focus on ensuring that workers have access to these new jobs, advocating for fair hiring practices and promoting job creation in industries affected by AI.
Ethical AI and Algorithmic Bias: AI systems are not immune to biases, and their decisions can have far-reaching consequences. Unions can advocate for ethical AI practices, transparency in algorithmic decision-making and measures to mitigate bias in AI systems to ensure fair treatment and prevent discrimination in the workplace.
For instance, a few months back, Google’s AI image tool faced criticism for producing culturally insensitive images based on user inputs, highlighting the unconscious biases embedded within the algorithm by the developer. This incident and the controversial questions posed to AI models like Gemini highlight the critical importance of ethical AI and the mitigation of algorithmic bias in industrial relations. The potential bias in AI algorithms can bring challenges to Industrial Relations. AI systems, if not carefully monitored and regulated, can perpetuate and even amplify biases present in society, leading to discriminatory outcomes in the workplace.
By promoting ethical AI practices and measures to mitigate bias, unions can help safeguard against discriminatory practices, foster a more inclusive work environment and uphold the principles of fairness and equality in industrial relations. Additionally, these incidents underscore the necessity for ongoing scrutiny and regulation of AI technologies to prevent harmful outcomes and ensure that AI serves the best interests of all stakeholders in the workplace.
Worker Protection and Rights: As artificial intelligence becomes increasingly integrated into workplaces, labour laws must evolve to safeguard workers’ rights, including fair wages, working hours and safe conditions. Clear guidelines are necessary to address challenges such as remote work, digital monitoring and accountability for decisions driven by AI.
Future of Work: AI is reshaping the nature of work, and unions can play a crucial role in shaping the future of work by engaging in discussions with employers, policymakers and other stakeholders. Unions can participate in conversations regarding the regulation of AI, the impact on job quality and the equitable distribution of benefits arising from AI implementation.
Soft HR vs Industrial Relations:
The preference for soft HR practices and the increasing reliance on technology in HR management has indeed led to concerns about the lack of expert practitioners in industrial relations (IR) and the potential loss of personal touch in HR interactions.
Soft HR practices emphasize building relationships, fostering communication and prioritizing employee well-being. While these practices are valuable for promoting a positive work environment, they may not always address the complexities of labour relations and collective bargaining that are central to IR. Consequently, there’s a risk of HR professionals focusing more on individual employee needs and less on broader labour issues, potentially leading to gaps in expertise in IR matters within HR departments.
Moreover, the excessive use of technology in HR processes can further exacerbate the loss of personal touch. Automated systems and digital platforms may streamline administrative tasks but can sometimes create distance between HR professionals and employees, reducing opportunities for meaningful human interaction and personalized support.
To address these challenges, organizations need to strike a balance between soft HR practices, technological advancements and expertise in industrial relations. This may involve investing in training and development programs for HR professionals to enhance their understanding of IR principles and labour laws. Additionally, fostering a culture that values open communication and collaboration between HR, employees, and union representatives can help maintain a personal touch in HR interactions while leveraging technology to improve efficiency and effectiveness.
Ultimately, it’s essential for HR departments to recognize the importance of both soft HR practices and expert knowledge in industrial relations to effectively navigate the complexities of the modern workplace and promote positive employee relations.
Conclusion:
AI holds the promise of unlocking prosperity by improving working conditions, enhancing productivity and fostering innovation. However, it is essential to recognize that the unchecked proliferation of AI in the hands of corporate interests can exacerbate economic inequality, limit workers’ rights and erode democratic principles.
Labour unions play a vital role in advocating for the responsible and ethical deployment of AI to ensure that its benefits are shared equitably among all stakeholders. Additionally, HR and IR professionals are poised to play a key role in this process. By collaborating with labour unions, industry leaders, and policymakers, HR and IR professionals can help shape AI implementation strategies that prioritize the well-being of workers, promote fairness in employment practices and uphold democratic values.
Together, through concerted efforts and collaboration, we can harness the transformative potential of AI while addressing its challenges. By establishing clear regulations, ethical guidelines and mechanisms for worker empowerment, we can create a future of work that is inclusive, equitable and sustainable for all.
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