Will AI be banned from HR?

A government inquiry into the digital transformation of workplaces has recommended barring employers from using AI to make decisions affecting workers without "human oversight".

The House Standing Committee on Employment, Education and Training also suggests that the Fair Work Commission should review the National Employment Standards in response to "significant job redesign" by AI technology.

The report offered 21 recommendations related to the "rapid uptake" of automated decision-making and machine learning in the workplace.

The inquiry found that “digital transformation has exposed significant risks, including gaps in Australia's regulatory frameworks and workplace protections", says committee chair Lisa Chesters in the report's foreword.

She is most concerned with protecting worker data and privacy, suggesting the Fair Work Act be amended to “improve transparency, accountability and procedural fairness regarding the use of AI and (automated decision-making) in the workplace”.

ACTU assistant secretary Joseph Mitchell said the committee's recommendations "support a core principle of Australian unions – that everyone should have a say over their wages and conditions at their workplace".

"Too often, we have seen AI used by multinational giants to undermine workers' wages and conditions," he said.

"Whether it's workplace surveillance or using algorithms to sack workers, bosses should be accountable for decisions made using AI models and tools.

"Workers deserve greater transparency over AI adoption and the collection of personal data by their bosses.

Guess who gets hurt by proposed public service cuts?

Australian Unions warn that if the Coalition goes ahead with its plan to cut $6 billion from public services, it will devastate important public services and wipe out up to 36,000 jobs.

The cuts risk creating growing claim backlogs at Services Australia, the Department of Veterans Affairs, and the ATO which could delay essential payments and weaken tax avoidance efforts.

The cuts to public sector jobs will not save taxpayers’ money. When in office, the Coalition relied heavily on private consultants, particularly the Big Four accounting and consulting firms, awarding them contracts totalling $21 billion in the final year alone of the Morrison Government – much of the public service jobs growth under the current federal government is the result of bringing these services back in-house at lower cost and with greater accountability. More than 20,000 of the new public sector jobs are based outside of Canberra, including frontline health and community workers, with large workforces in communities including Townsville and Geelong.

ACTU President Michele O’Neil says the job cuts would mean “service cuts to all Australians”.

“Australians need an effective public service that supports their communities. For Australian veterans, students and pensioners, Dutton’s cuts mean longer wait times and fewer people to help you if you need assistance with your payments.

“The only winners from Peter Dutton’s cuts are big consultants that will profit from this outsourcing, as well as multinational companies that will have weaker oversight on their tax avoidance.

John Hawkins, Senior Lecturer, University of Canberra, writing for The Conversation, pointed out that the agencies that added the most public servants between June 2023 and June 2024 were ones 'providing invaluable front line services to clients and customer who are accessing essential support', including the National Disability Insurance Agency, Defence, Health and Aged Care and Services Australia.

“Many of these extra staff would be providing invaluable front line services to clients and customer who are accessing essential support.”

Hawkins says many of the new public servants replaced “more expensive outsourced workers”.

“Finance Minister Katy Gallagher has claimed the Albanese government has saved $4 billion of taxpayers’ money by reducing spending on consultants and contractors.”

Hawkins says the proposed culling of senior public servants also represents “a chilling risk to good policy development”.

“Departmental secretaries concerned about losing their jobs may be reluctant to give the ‘frank and fearless advice’ their positions demand.”

Penalty rates under threat

The ACTU is calling on the Federal Coalition to support the Government in  opposition to  proposed cuts in retail workers’ penalty rates.

The Australian Retailers Association (ARA), backed by major retailers including Coles, Woolworths, and Kmart, is trying to cut penalty rates - wages that over a million Australian workers rely on to make ends meet.

Despite the retail industry raking in over $7 billion in profit last year, these corporations have applied to the Fair Work Commission to strip penalty rates from Awards and Enterprise Agreements. If they succeed, this would mean:

• No more overtime pay

• Cuts to evening and weekend penalty rates

• Shorter rest breaks between shifts (from 12 hours down to just 10 hours!)

The Fair Work Commission’s ruling could impact more than a million workers, including 360,000 permanent workers in key Award-reliant sectors and 660,000 workers on Enterprise Agreements or on contracts that these Awards underpin.

A rollback on penalty rates in retail could trigger further challenges to penalty rates across other Award-reliant industries, including hospitality, healthcare, fast food and administration.

ACTU President, Michele O’Neil said the issue would determine if Coalition leader Peter Dutton would be “on the side of working people or on the side of big business”.

“The last thing Australian workers can afford is a pay cut from Australia’s biggest companies. The Australian Retail Association’s application is an insult to hard-working Australians who rely on their penalty rates and work rights to make ends meet.