The Invisible Colleague — Balancing Algorithmic Management With Workers’ Rights

How much power does an algorithm wield? As algorithms increasingly permeate every aspect of our society, this question demands constant reflection. In the evolving world of work, algorithms have quietly emerged as an invisible — and successful — colleague. Throughout 2024, a new term entered the public discourse: algorithmic management.

This term describes the use of data-driven systems to monitor, supervise and evaluate employees — a practice already adopted by companies such as Amazon and 7-Eleven.

Algorithmic management promises undeniable benefits: enhanced efficiency, cost reduction, real-time performance tracking and objective decision-making. By minimizing human error and bias, it creates a standardized approach to tasks like hiring and performance evaluations.

But alongside these advantages come significant concerns. As Social Europe aptly put it, integrating algorithmic management while safeguarding workers’ rights presents a “codetermination challenge”.

Algorithmic management’s influence on workplace productivity is complex and multifaceted. On the one hand, these systems can significantly enhance output by streamlining operations and minimizing inefficiencies. Real-time data collection and performance tracking enable quick adjustments, ensuring that resources are optimally allocated and employees are meeting targets. Automated scheduling, for instance, can maximize workforce utilization, while predictive analytics can anticipate challenges before they arise.

Gains come at a cost

However, these productivity gains often come at a cost. Research has shown that over-reliance on algorithmic management can lead to a decline in creativity and adaptability among employees. A 2024 study by Liu et al revealed that while algorithms improve routine task efficiency, they diminish workers’ improvisational capabilities, which are crucial for problem-solving and innovation.

Employees under constant algorithmic surveillance often experience heightened stress and reduced autonomy, which can negatively affect their motivation and overall performance.

Moreover, studies, including one from the Harvard Business Review, have found that algorithmic management can erode social cohesion in the workplace. By prioritizing metrics over human interaction, these systems may inadvertently suppress collaboration and prosocial behaviours, such as teamwork and mutual support.

This shift can hinder long-term productivity, as a lack of workplace camaraderie often leads to lower job satisfaction and higher employee turnover.

South African challenges

In South Africa, the implications of algorithmic management are particularly significant. The country faces unique challenges, including high unemployment, a growing informal sector and a legacy of economic inequality.

Algorithmic management, if implemented thoughtfully, could offer transformative benefits by streamlining operations in critical sectors like mining, manufacturing, logistics and retail, thus boosting productivity and fostering economic growth.

However, South Africa’s socioeconomic context also raises serious concerns about the ethical deployment of such technologies. The high unemployment rate means that the displacement of jobs due to automation or algorithmic oversight could exacerbate existing inequalities.

Furthermore, a lack of transparency and accountability in these systems could reinforce structural discrimination, particularly if algorithms are trained on biased data reflective of historical inequities.

South Africa’s Constitution, with its strong emphasis on human rights and dignity, offers a framework to address these challenges. Trade unions in South Africa have historically played a crucial role in advocating for workers’ rights and ensuring fair labour practices. Their involvement in the rollout of algorithmic management systems could be instrumental in mitigating potential harm.

By demanding transparency, accountability and inclusive decision-making, unions can ensure that these technologies enhance rather than undermine worker welfare.

Additionally, South Africa’s ongoing efforts to upskill its workforce, particularly through initiatives like the Presidential Commission on the Fourth Industrial Revolution, are vital. These programmes can equip workers with the tools needed to adapt to an increasingly automated workplace while preserving job security and fostering innovation.

In sectors like agriculture, where algorithmic management could optimise production, or healthcare where it could streamline patient care, these technologies could have transformative effects.

But as the country embraces these opportunities, a human-centric approach that aligns with South Africa’s commitment to social justice is imperative.

Role of trade unions

This raises an urgent question: how do we balance technological integration with protecting workers’ rights and sustaining productivity?

An essential part of the solution lies in strengthening the role of trade unions. Trade unions have historically acted as a vital counterbalance to shifts in workplace power dynamics, advocating for fair treatment and ensuring that the interests of workers are not overlooked.

In the age of algorithmic management, unions can play a crucial role in negotiating the terms of technology integration.

Trade unions must be empowered to push for transparency in how algorithms are deployed, ensuring that workers understand how decisions affecting their employment are made. They can also advocate for frameworks to mitigate bias, secure data privacy and ensure accountability for algorithm-driven decisions.

Moreover, unions can work to establish agreements that prioritize job security, fair evaluation practices and access to reskilling programmes as the workplace evolves.

Labour law in an AI-driven economy

In our 2024 book, Artificial Intelligence and the Law, we explore this conundrum in depth. We argue that AI is reshaping the workforce, creating opportunities while presenting significant challenges to labour law.

Addressing these requires global cooperation, adaptive regulations and active engagement with unions to safeguard privacy, prevent discrimination and maintain ethical standards in an increasingly AI-driven economy.

As South Africa navigates these challenges, policymakers, unions and employers must collaborate to create a framework that ensures intelligent technologies complement human potential rather than replace it. Striking this balance will not only protect workers, but also foster a productive, innovative and inclusive economy that can serve as a model for the rest of the world.

With the right safeguards, South Africa can harness the power of algorithmic management to drive economic growth while safeguarding its commitment to fairness, dignity, and social justice.

The stakes are high, but so too are the opportunities. Intelligent technologies can transform the workplace, but it is our collective responsibility to ensure they do so with humanity at their core.

This article was first published by Daily Maverick. Read the original article on the Daily Maverick website.