Microsoft announced a new agreement with the AFL-CIO, the country’s largest federation of unions, that seeks to address concerns about the impact of artificial intelligence on American workers as part of a concerted public campaign by the tech giant to separate itself from its industry rivals on the issue.
The AFL-CIO and Microsoft said the agreement includes a “neutrality framework” that will apply to future efforts by workers to organize under affiliated unions.
They said the framework confirms “a joint commitment to respect the right of employees to form or join unions, to develop positive and cooperative labor-management relationships, and to negotiate collective bargaining agreements that will support workers in an era of rapid technological change.”
AI has emerged as a wedge issue in a wide range of labor negotiations over the past year, including the now-settled strikes by Hollywood screenwriters and actors.
Microsoft has played a key role in opening the eyes of the world to the benefits and risks of generative AI through its partnership with ChatGPT maker OpenAI. Shareholders last week voted down a resolution urging Microsoft to slow its pace of AI development to more closely study the impacts of the technology.
The company’s new union agreement, described as the first of its kind to focus on AI, was announced at an event in Washington, D.C. on Monday morning by AFL-CIO President Liz Shuler and Microsoft President Brad Smith.
Those in the audience included United Auto Workers President Shawn Fain, fresh off the UAW’s successful strike against major automakers.
Speakers included Claude Cummings Jr., president of the Communications Workers of America, which struck an earlier agreement with Microsoft related to its acquisitions of game companies Activision-Blizzard and ZeniMax.
“I believe young people today are interested in joining unions,” Cummings said. “You’re gonna see some of the greatest young minds fleeing from those other tech companies and coming to Microsoft because of this deal.”
In negotiations with ZeniMax over Microsoft’s first U.S. collective bargaining agreement, Microsoft has reportedly made concessions over artificial intelligence, and agreed to convert some workers from contractors to employees.
Microsoft’s turnabout on union issues, starting last year, contrasts with its past opposition to union organizing in its workforce. With a valuation of $2.75 trillion, Microsoft can afford to position itself as the “adult in the room” these days.
Even as Microsoft has expressed neutrality on the concept of unions in its midst, the company has yet to see the labor movement take hold in its core ranks of U.S. engineering or corporate employees. Activities thus far have largely focused on Microsoft’s acquired video-game companies, in units such as testing and quality assurance, where unions have historically had more momentum.
Other tech giants, including Microsoft’s cross-town rival Amazon, have taken a more confrontational approach to union movements inside their workforce. Asked during the Monday event about the possibility of the Redmond company serving as a model for the industry, Smith said he was reluctant to preach to others on the issue.
“I always want to be respectful of everybody’s right to make their own decisions,” Smith responded. “But I do think we’re an industry that tends to learn from success. So we have the opportunity to create a new success and I suspect that as we do, others will be quick to follow.”
Other key points from the event included:
- Getting workers involved in the development of AI tools from the beginning to help anticipate impacts and needs for protections/regulations that policymakers may not foresee.
- Helping workers transition between jobs as new types of jobs are created, through supporting career/technical education, apprenticeships, and skills training.
- Addressing potential job displacement from AI by exploring how technology can be used to enhance productivity and potentially wages, rather than solely replace human roles.
Watch an archived live stream above.
